Insurers banned from including discretionary clauses in disability policies

Recently, the state passed legislation which prevents insurance providers from including discretionary clauses in disability insurance policies.

In 2010, the U.S. Supreme Court ruled that states have the right to chose whether or not discretionary clauses are prohibited.

A discretionary clause allows an insurer to dispute any medical evidence of a claimants disability and gives them the possibility to deny coverage.  Until a recent law was passed, this practice was completely legal in the state of California.

However, as of January 1, 2012, the practice will be illegal for insurers of disability insurance.  The law is seen as a victory for disabled Americans and their families.

If you or someone you know is involved in a dispute with their insurance provider over insurance coverage, contact the Orange County insurance coverage dispute lawyers of DAILY ALJIAN LLP at 949-861-2524 to discuss your situation with one of our attorneys today.