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A long term disability policy can be a wise choice; knowing that monthly income will be provided in the event some injury or illness prevents the policy holder from working for an extended period of time can be very reassuring. Unfortunately, many long term disability insurance companies do not evaluate a claim in an objective and unbiased manner. Some of the largest insurance carriers have been fined by the government for unfair tactics in delaying and denying claims with the hope that many eligible claimants will give up and go away.

Having insurance of any sort is an interesting proposition. Whether required by law or optional or whether it's provided by one’s employer or purchased privately, most people acquire various policies protecting different interests all with the hope of never having to be in the position of needing the benefits the policy coverage provides. However, as obvious as it may seem to the person making a claim for long term disability benefits that they are disabled and cannot work, it is the insurance carrier who makes that decision.  As our NY disability attorneys can attest, many claimants are surprised to learn that they have had their claim denied.

The New York State Insurance Department has issued a proposed regulation prohibiting insurers from placing discretionary clauses in insurance policies. This regulation is hugely important to long term disability claimants. If this regulation becomes law, it would enable courts to fully scrutinize the claim determinations of insurance companies. Under the current law, a court will only overturn a claim denial if the insurance company's determination is an abuse of discretion. This regulation would constitute a turning point in this area of the law.