Newsletter Articles | October 31, 1991
Proposed Rules Permit Punitive Damaged for Arbitrary Non-Payment by Insurers
OPEN MINDS The Behavioral Health & Social Service Industry Analyst
Industry News
A House subcommittee has sent a draft of a proposed federal law that would permit punitive damage awards against insurers that arbitrarily refuse to make claims payment has been sent to the House Education and Labor Committee. The legislation would overturn a unanimous 1987 Supreme Court decision that held that ERISA, not state tort law, governs bad-faith suits against health insurers that fail to pay claims, according to an article by Merit C. Kimball "Making Insurers Pay For . . .