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Eighth Circuit: Choice-of-Law Provision Trumps Insurance Regulation Banning Discretionary Review
Lane Powell PCLink to more items from this source
Jan. 8, 2015
"[The employee] works in South Dakota ... [while the employer] is based in Minnesota and the long term disability policy was issued in Minnesota. The policy contained language requiring discretionary review, and the plan contained a choice-of-law provision requiring application of Minnesota law. South Dakota has banned discretionary review. Minnesota has no such regulation.... What standard of review applies: South Dakota law and de novo review, or Minnesota law and abuse of discretion review? [The Eighth Circuit] Court of Appeals held: Minnesota law and the abuse of discretion standard applies." [Brake v. Hutchinson Technology Inc. Group Disability Income Ins. Plan, No. 13-3421 (8th Cir. Dec. 29, 2014)]

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