State Law Banning Discretionary Clauses Applies To ERISA Plan

CHICAGO - An Illinois regulation banning discretionary clauses in insurance contracts offered in Illinois applies to a disability plan governed by the Employee Retirement Income Security Act, even though the policy stated that it was delivered to a health insurance trust in Delaware, because the plan sponsor was located in Illinois, a federal magistrate judge in Illinois ruled Jan. 18 in concluding that the disability insurer's decision to terminate a claimant's benefits will be reviewed de novo (Cindy Curtis v. Hartford Life and Accident Insurance Company, No. 11 C 2448, N.D. Ill.; 2012 U.S. Dist. LEXIS 5423). Full story on lexis.com