1)
The fact that individuals purchasing insurance at their workplace have no recourse
if they are cheated by their insurance companies. This is so, even if they are
bankrupted and their lives are destroyed.
The
reason for this, of course, is called ERISA PREEMPTION. The substance of this
problem is discussed elsewhere on this website.
To
eliminate this problem Congress simply MUST reform ERISA so that policies obtained
in the workplace are afforded the same protections as policies obtained anywhere
else.
2) When a policyholder's rights are not
preempted by ERISA that means the insured receives the protections and remedies
provided by his state's insurance laws. The problem is that due to lobbying by
insurance interests, many states have totally inadequate policyholder protections.
This fact places insureds in many states in the same type of leaking boat as the
ERISA Preempted claimants. To remedy this problems all states should afford the
same protections to consumers as those provided under through the laws and court
decisions in the State of California.
Specifically,
insureds illegally deprived of policy benefits should be entitled to obtain compensation
for all resulting damage including:
a. of all
the past and future benefits owed,
b. consequential
damages if they have lost savings, homes and other assets.
In
addition, as in California, insurance companies should be deterred from profitable
misconduct by providing judges and juries with the authority to award punitive
damages in cases involving clear and convincing evidence of malice, fraud or oppression.
