Second Circuit Finds Insurer’s Decision Rejecting Life Insurance Benefits Arbitrary and Capricious

Cohen v. Metropolitan Life Ins. Co.

(2nd Cir., June 9, 2009)

The Second Circuit upheld a district court's ruling that an insurer’s denial of life insurance benefits was arbitrary and capricious.  The court, in upholding the district court's decision, concluded that its rationale that it had a “pre-existing condition” was questionable especially when one factors that the insurer was operating under an actual conflict of interest as both an administrator and fiduciary to the plan. 

 

The Second Circuit, however, finds that an award for attorneys' fees is unwarranted as the insurer diligently attempted to comply with the lower court's rulings on the plan.   

 

For a copy of the decision, click here.

 

By Kimberly E. Whistler and Daniel W. Gerber

https://www.goldbergsegalla.com/attorneys/Whistler.html

https://www.goldbergsegalla.com/attorneys/Gerber.html