“Don’t Messa with my ERISA Mista:” — Ninth Circuit IDs a New Target.

ERISA is a federal law that regulates how Long Term Disability Benefits get paid.  The Ninth Circuit just held that the Insurance Company that is to pay the benefits can be sued for not paying out as required by the benefit plan.  See 29 U.S.C. Sec. 1132(a)(1)(B) and Cyr v. Reliance (9th Cir. 6-22-11) 2011 DJDAR 9177.  Up to this time, the Circuit had held only the employer and the “Plan Administrator” could be liable.  Allowing employees to sue the Insurance Companies will result in those companies taking their duties more seriously.

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