California lawmakers want to assist disability insurance claimants

A recent article written by Evan George of the Los Angeles Daily Journal, documents a new bill that would be a great thing for long-term disability claims that are governed by ERISA. If this bill passess, we can only hope that other states across the country would adopt similar legislation. Discretionary clauses do nothing other than tie the hands of judges and increase the profits of disability isnurance companies. A special thanks to Evan for sharing this article with our law firm and for his efforts in independently reporting the actions of long-term disability insurance companies.

Lawmaker Wants to Level Field for Disabled

by Evan George

Spurred by stories of sick and injured policyholders whose disability claims are improperly denied and then tied up in court, a Sacramento lawmaker has introduced legislation that experts say would level the playing field for the disabled.

State assemblyman Dave Jones said his bill, AB 1868, “will help disabled people across California who have suffered from disability insurers’ refusal to make good on their promise.”

The bill seeks a quick fix to what Jones called the “unfair and unequal” legal standing policyholders have suffered in federal courts because of certain clauses that insurance companies insert into the policies, making the companies, and their paid doctors, the sole authority on whether a claimant is disabled.

Under the proposed legislation, those “discretionary clauses” would be null and void.

It would require the state Insurance Commissioner to reject policies that contain those previsions and strike them from existing policies.

The Assembly’s Insurance Committee will hold a hearing on AB 1868 today.

The legislation comes nine months after an investigation by the Daily Journal revealed that hundreds of disabled Californians who are denied benefits face a long and difficult fight on their own, without the aid of government regulators and in an arena that favors insurers.

State and national trade groups for the insurance industry have pledged to fight the bill, saying it removes the insurers’ ability to adjudicate claims and weed out malingering claimants.

“Your bill would turn the claims paying process into chaos,” wrote one lobbyist for the California Association of Health Underwriters in a letter to Jones.

Experts on health law applauded the effort as a strong and necessary consumer protection.

It also has the backing of the Consumer Attorneys of California and individual lawyers who represent policyholders.

Disability insurance, which now covers more than a third of the workforce, typically promises to pay two-thirds of workers’ wages if they become too sick or injured to work.

In most cases, when a worker who has paid for disability benefits files a claim, the insurer will review it and pay.

But some cases – particularly those where the insured reports suffering from complex symptoms like long-term injuries of the back, neck and spine – are denied, even if treating physicians and the Social Security Administration say they can’t work.

The result is that workers who believed they had a safety net find themselves fighting for benefits at the same time they are dealing with health problems and medical bills.

That was the case with Sandra Frost, a former Wells Fargo Bank manager in the East Bay, who plans to testify at today’s hearing.

Frost, 47, has been diagnosed with narcolepsy, chronic pain and another rare condition called Chiari Malformation, which makes working impossible.

She had a group policy with MetLife and received disability coverage in 2002. But by 2004, the insurer and its doctors decided she could return to work, despite what her physicians and the federal government said.

She has been fighting ever since, Frost said.

During a limited bench trial, a district judge found that MetLife did not “abuse its discretion” and dismissed her case. The U.S. 9th Circuit Court of Appeal in 2007 found she should be paid for 3 months of disability, but confirmed that the district court was right to apply a high burden of proof because of that discretionary clause.

MetLife was owed deference in deciding her case, the court found.

“They have no accountability,” Frost said in an interview. “I lost my house, my car, and my good credit rating, and it just wasn’t fair.”

A MetLife spokeswoman on the East Coast could not be reached for comment late Tuesday and a MetLife defense lawyer in California did not return a telephone call seeking comment. The New York-based insurance company has had more than 177 lawsuits like Frost’s brought against it between 2004 and 2009 in California alone.

That legal battle would be made easier for plaintiffs if the bill passes, said Bryan Liang, executive director of the Institute of Health Law Studies at California Western Center School of Law.

“What this bill really does is requires some enforcement,” Liang said.

Brietta Clark, another health law professor at Loyola Law School, said she backed the measure even though she believed it did not go far enough.

“It’s still reactive,” said Clark, because it fails to address the practice of paying a stable of doctors to justify denying legitimate claims. “It doesn’t help patients until they get to trial.”

Both experts said it accomplished the goal of letting judges, not insurers, decide a case based on evidence.

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Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

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No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

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When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

Reviews

Bruce R. (Arizona)

Steve Dell has done an exceptional job with my disability application process. The firm is extremely well managed. They have acquired an incredible amount of experience over many years. I recommend them for disability insurance claims without reservation. 

Don (Florida)

I called this firm a few months ago completely disparaged due to a company cutting off disability benefits at a time that nearly caused me to lose everything.

Attorney Alex Palmera and Danielle worked hard to reach an amicable settlement and my case was settled a few months later. This is a good firm and the specific expertise in disability claims saved me countless hours of hassle at a time when an already fragile state existed.

Thank you Mr. Palamara and Danielle.

Sandra B. (Arkansas)

I have nothing but good things to say about how my buyout was handled with my disability claim. The level of professionalism was amazing. All of my questions and concerns were answered either by Danielle L. or Alex P. in such a timely manner and with such care I would recommend them in a heartbeat to anyone needing to approach their provider with buyout options.

They did a fantastic job communicating between the provider and me, always keeping my best interest at heart and always answering my many many questions. They really did take most of the stress out of this whole situation. I would give them a 10 out of 10 for every step of this crazy journey. Thank you so much for helping me through this.

Brenda R. (New York)

I needed assistance with an appeal for a LTD claim that was initially denied. Stephen understood what needed to happen to win the appeal and he did win the appeal for me.

Michael C. (Virginia)

Greg Dell and his assistant Anneli have been extremely responsive and helpful, not only our initial consultations, but in follow-ups 1 and 2 years later with the insurance company to ensure that they comply with their agreements (which they did), as well as a separate and only slightly-related inquiry about our health insurance. I always hear back from them very quickly, which is rare and greatly appreciated.

Jeff P. (Oklahoma)

After a very long and frustrating ordeal to keep my LTD payments coming I decided to seek assistance from and attorney. After much research and asking those in the legal profession Dell & Schaefer seemed to be the top choice. I reached out and Alex Palamara was the attorney assigned to my case. All I can say is the experience was outstanding. Both Alex and his Paralegal, Danielle Lauria were excellent to work with. They were very kind, concerned, understanding of my frustrations and treated me with the utmost respect. Communication was excellent with regular updates and telling me what I could expect in each stage of the process.

Alex was also very straight forward with what to expect and no pie in the sky promises or expectations were made. In the end we won our case and I believe it was solely due to their experience and knowledge of not only the laws but the insurance companies as a whole. I would highly recommend them and am very grateful for the help they afforded to me.

Chad B. (Illinois)

I originally spoke with 3 other long term disability lawyers about my case before contacting Dell and Schaefer. None of those law firms would take it. They said the chances of me winning was not good. After finding Dell and Schaefer online I spoke with one of the attorneys that has since left. He did take my case but later it was picked up by Rachel Alters. Rachel is amazing and a very intelligent attorney. She not only won my case but also was able to get my back pay for 6 months.

I also cannot say enough about Sonia Nogueira. Sonia was always quick to answer any of my questions. I would usually hear back from her within hours of sending her a email. I do not know where I would be if I hadn’t contacted them. My family and I cannot thank them enough. Don’t let an insurance company tell you they are not responsible for paying you. I paid them for 20 years monthly and they looked for any reason they could not to have to pay me when I needed my benefit. Thank you Rachel and Sonia for all you guys do.

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