Which states have banned discretionary clauses in ERISA disability insurance policies?

As of August 2014 there are 20 states that have either passed laws or department of insurance regulations which abolish discretionary clauses. Our attorneys continue to fight on a daily basis to abolish discretionary clauses in all 50 states. We have provided below a listing of the laws in each of the states that have abolished discretionary clauses.

  1. CALIFORNIA – Cal. Ins. Code § 10110.6;
  2. CONNECTICUT – Bulletin HC-67; (March 19, 2008), available here (last visited Oct. 18, 2011);
  3. HAWAII – Commissioner’s Memorandum 2004-13H (Dec. 8, 2004), available here (last visited Oct. 18, 2011);
  4. IDAHO – Idaho Administrative Code § 18.01.29.011, available here (last visited Oct. 18, 2011);
  5. ILLINOIS – Ill. Admin. Code 50 § 2001.3 (2005); see also Company Bulletin 2010-05 (June 28, 2010), available here (last visited Oct. 18, 2011);
  6. INDIANA – Bulletin 103 (May 8, 2001), available here (last visited Oct. 18, 2011);
  7. KENTUCKY – Advisory Opinion 2010-01 (March 9, 2010), available here (last visited Oct. 18, 2011);
  8. MAINE – 24-A M.R.S.A. § 4303(11);
  9. MARYLAND – MD Code, Insurance, § 12-211;
  10. MICHIGAN – Mi. Admin. Code §500.2201 et seq., available here (last visited Oct. 18, 2011), Mi. Admin. Code § 550.111 et seq., available here (last visited Oct. 18, 2011), Mi. Admin. Code § 550.301 et seq., available here (last visited Oct. 18, 2011);
  11. MINNESOTA – M.S.A. § 62Q.107;
  12. NEW JERSEY – N.J. Admin. Code § 11:4-58.1 et seq.;
  13. NEW YORK – Circular Letter No. 14 (June 29, 2006), available here (last visited Oct. 18, 2011);
  14. OREGON – O.R.S. § 742.005 (see also Form 3172b – Standard Provisions for . . . Policies at p. 5, available here (last visited Oct. 18, 2011)) (Form 3631 – Standards for Accidental Death and Dismemberment . . . Policies at p. 7, available here (last visited Oct. 18, 2011));
  15. SOUTH DAKOTA – S.D. Admin. Rules § 20:06:52:01, et seq., available here (last visited Oct. 18, 2011);
  16. TEXAS – 28 Tex. Admin. Code § 3.1202 et seq.;
  17. UTAH – Utah Admin. Code R590-218; See also Bulletin 2002-7, available here (last visited Oct. 18, 2011);
  18. VERMONT: Sec. 31. 8 V.S.A. § 4062f, see here;
  19. WASHINGTON – WAC 284-44-015, available here (last visited Oct. 18, 2011), WAC 284-46-015, available here (last visited Oct. 18, 2011), WAC 284-50-321, available here (last visited Oct. 18, 2011), and WAC 284-96-012, available here (last visited Oct. 18, 2011);
  20. WYOMING – W.S. 1977 § 26-13-301 et seq.

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