A federal judge has upheld a ruling by Montana Insurance Commissioner John Morrison prohibiting "discretionary clauses" in group health and disability insurance policies statewide. These clauses affect people who are insured through their jobs, which includes most insured Montanans and Americans, Morrison said. Insurance commissioners in several states have prohibited use of the clauses, but Morrison says he believes that this was the first federal court opinion upholding such a ban in the U.S.
March 05, 2008 at 12:00 AM
1 minute read
A federal judge has upheld a ruling by Montana State Insurance Commissioner John Morrison prohibiting “discretionary clauses” in group health and disability insurance policies in the state.
The ruling by U.S. District Judge Donald Molloy of Missoula, Mont., means insurers no longer can rely on obscure contract language to avoid paying claims, Morrison said Tuesday.
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