Life insurance benefits case rejected by Supreme Court

The U.S. Supreme Court chose not to rule on a case of a widow denied $426,000 in life insurance benefits because federal retirement law does not permit her to seek compensation, according to published reports.

The woman, who lives in Houston, wanted the court to rule that her husband’s employer breached its fiduciary duty.

Under the Employee Retirement Income Security Act of 1974, beneficiaries are entitled to sue to obtain equitable relief, including a court injunction or restitution. However it does not include legal relief or monetary damages.

The 5th U.S. Circuit Court of Appeals ruled that ERISA prohibited her from seeking the monetary damages equaling the insurance benefit.

Aetna denied the woman, Melissa Amschwand, benefits because her sick husband never returned to work. To trigger the life policy, he needed to return for at least one day.

Amschwand alleges that the employer was responsible for the error because employees never told them or provided documents explaining the return-to-work requirement, and told them that they would be covered when the employer switched plans from another company to Aetna.

http://ifawebnews.com/articles/2008/06/30/news/life/doc486902bb484bb944583832.txt

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Life insurance benefits case rejected by Supreme Court