State of Washington Bars Discretionary Clauses in Disability Policies

There are many clauses you don’t want to see in your long term disabilty policy and one is the “discretionary clause.” This clause says that their interpretation of the long term disablility policy or their decision regarding your eligibility or continued receipt of benefits is binding.

All too oftern, the discretionary clause is abused by disability carriers and used as the excuse for denying your claim and rejecting your appeals!

Now, the State of Washington has joined the ranks of those states that have prohibited the use of discretionary clauses in disability policies.

At The Law Offices of Nancy L. Cavey, your Florida  long term disability benefits denied law firm, we applaud the State of Washington. We hope Florida’s Insurance Commissioner, Kevin McCarthy,  will join with those states who have prohibited discretionary clause based on the NAIC’s rejection of discretionary clauses.

http://www.insurance.wa.gov/oicfiles/rules/new/R_2008-25103.pdf