Seventh Circuit: Federal Government Can Garnish Private Disability Insurance Payments for Restitution Order

U.S. v. France
U.S. Ct. Apps., Seventh Cir., Apr. 7, 2015

The Seventh Circuit ruled that the federal government has the power to garnish monthly payments from a private disability insurance policy belonging to a dentist that had been ordered, as part of his guilty plea to mail fraud, to pay restitution to victims for a fraudulent billing scheme.

Here, the dentist was ordered to pay $800,000 in restitution to the victims of his fraudulent billing scheme in 2002. However, in 2014, he had paid …

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Abuse of Discretion Where Insurer Failed to Consider “Similar Income” Requirement

George v. Reliance Std. Life Ins. Co.
5th Cir., Jan. 15, 2015

In the appeal of an ERISA disability benefits denial, the Fifth Circuit found an abuse of discretion where the insurer failed to consider the “similar income” provision. The insurer had found in its investigation that the claimant was not totally disabled under the policy as there were sedentary jobs for which the insured was able to perform. What the court found lacking, was any discussion of whether the sedentary jobs the insurer found …

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Life, Health, Disability, and ERISA Newsletter is Now Available

Life, Health, Disability, and ERISA provides a summary of decisions from across the country concerning life, health, and disability policies, including those governed by ERISA. Following your review of Life, Health, Disability, and ERISA kindly feel free to contact attorneys and co-editors with any comments you may have, or with any topics you would like to see in upcoming newsletters.

For a free copy of this edition, click here.…

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Life, Health, Disability, and ERISA Newsletter is Now Available

Life, Health, Disability, and ERISA provides a summary of decisions from across the country concerning life, health, and disability policies, including those governed by ERISA. Following your review of Life, Health, Disability, and ERISA kindly feel free to contact attorneys and co-editors with any comments you may have, or with any topics you would like to see in upcoming newsletters.

For a free copy of this edition, click here.

 …

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