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Eighth Circuit Ruling Shows Lax Enrollment Practices Can Be Costly
DeBofsky Sherman Casciari Reynolds P.C.
May 23, 2022 "The court expressed concern about the legal consequence of Reliance's acceptance of Skelton's premium payments, pointing out that it had told Skelton she would not have to pay premiums until the coverage was approved, yet Reliance 'then took her premiums without approving her application -- profiting on its broken promise.' ... [T]he Eighth Circuit sent a powerful message to ERISA fiduciaries that they need to maintain strict procedures and guidelines in administering benefits, and that sloppiness or negligence will be punished." [Skelton v. Radisson Hotel Bloomington, No. 21-2641 (8th Cir. May 6, 2022)] |
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