There’s an unfortunate trend happening right now where companies that offer disability insurance are suddenly telling policyholders that their plan is governed by the Employees Retirement Income Security Act when they file a claim – even though this fact was never mentioned anywhere before then!
Why’s this going on? Because insurers know that they’re far more protected from legal liability under the Employee Retirement Act than they would be if the plan in question was independent. This has led them to attempt to retroactively alter plans so that they are covered under the federal rule, and sometimes even bend the truth or outright lie to people when they make a long term disability claim.
Luckily, there are ways that a policyholder can determine whether or not their plan really is under these far more insurer-friendly regulations, but you’re going to have to look into the matter yourself if you want to appeal a denial.
When Your Insurance Policy Isn’t an ERISA Policy
How can you prove that your policy isn’t what they say it is? Check the facts.
Was it sold to you as an individual policy? By definition, the Employee Retirement Income Security Act covers group policies. If you purchased your policy individually – even if an employer pays for it – that does not mean that it’s covered under the federal act.
Can you switch jobs and keep your insurance? If it’s possible for you to leave your current job and still maintain your current insurance policy, then there’s no way that it falls under federal regulations.
Are you the individual owner of a personal corporation? The Employee Retirement Act clearly doesn’t govern plans for these types of individuals, but that won’t stop insurers for trying to classify your policy in whatever way benefits them most.
Experienced disability attorneys can show you not only what to look for, but also how and where to find that information and what to do with it.
Check out our free disability eBook to learn more about different policies and how you can fight for the benefits that you need.