Question
Which state statutes apply: the state the insured resides in or the state where the disability policy was purchased?
Which state statutes apply: the state the insured resides in (living there for years and when the claim is placed) or the state where the disability policy was purchased (purchased in school years ago)? Policy reads: "Conformity with state statutes: Any provision that on the date the Policy becomes Effective conflicts with the state statutes where the Insured resides, is changed to meet the minimum requirement of such statutes."
Answer
This is a really complicated question that involves a legal argument called Choice of Law. We had a case where our client was issued her Long term disability policy in Washington and then moved to Hawaii. We filed suit in Hawaii. We argued that Washington law applies and the court ruled that Hawaii law applies. It also depends if you are trying to apply substantive or procedural law. We have argued cases in Florida where the law of where the policy was delivered initially governs. We would need more facts to specifically answer your question and then it still won’t be a perfect answer for this issue as the Judge has discretion in many situations like this.
