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Ruling may force change in plan wording; Employers advised to review authority of administrators.(Employee benefits plan language regulation)
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Business Insurance
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October 17, 2005
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Copyright informationCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: DAVE LENCKUS
CHICAGO-Employee benefits plan sponsors may have to modify their plan documents to re-establish the discretionary authority they want claims administrators to have over coverage issues as a result of a federal appellate panel's decision.
A 3-0 ruling by a 7th U.S. Circuit Court of Appeals panel reverses two of the court's earlier decisions and embraces a third on the kind of plan document language that constitutes adequate notification to plan participants that claims administrators' decisions are largely shielded from court review.
The Sept. 20 ruling should prompt self-insured plan sponsors as well as benefits insurers to immediately review ...
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