Top Class Actions
Rehabilitating your disability insurance. Sun Life Assurance got hit with a potential class action this week—filed by a disgruntled (and rightly so) client (or is there another, more accurate term that could be used here…) who alleges that the company denied her disability claim on the lack of something called discretionary proof. Sounds dodgy to me.
Discretionary proof, you ask? According to information issued by the law firm handling the suit, discretionary proof clauses basically amount to a ‘get out of paying the insurance claim’ loophole. But don’t take my word for it. This from the statement on the class action:
“Discretionary proof clauses have been the subject of intense scrutiny by state regulators and insurance commissioners. The clauses provide that an insurer will pay a disability claim only if it is “satisfied” with the policyholder’s proof. Many insured persons claim that despite extensive proof of medical disability, including surgical reports, treatment records, and doctors’ affidavits, Sun Life and other insurers are “never satisfied” leaving them without disability coverage.”
Why am I not surprised by this?
Apparently, on June 1, 2007, the State of Michigan Insurance Commissioner outlawed discretionary proof clauses in all disability contracts delivered within the state. The insurance industry challenged the Michigan regulation, and on March 18, 2009, a federal appeals court decision found that the Michigan regulation was valid and lawful.
I don’t know about you—but I’m checking the fine print on my policy…
Top Settlements
No Eclipsing that Halitosis. Now—here’s a big win for all you gum chewers out there. Wrigley has agreed a $6M settlement in a class action suit over Eclipse gum.
Before you get too excited—the amount each class member will receive is about enough to buy another couple of packs of gum. The settlement works out to about $10 per person. But the lawyers can likely keep their entire staff in gum for the foreseeable future, as their portion of the settlement is reportedly $2 million. Nice. And the lead plaintiff who took it upon himself to stand up for the class and make the time to go to court—will receive $10,000. Now that’s something to chew on… (I know—that’s a bad one).
What was the fuss about? False advertising claims. How unusual. Apparently Eclipse gum is not equipped to deliver you of bad breath, as Wrigley had claimed, and thus save you from failure on dates, embarrassing encounters at work, or the tell-tale signs of a garlic fetish. Looks like it’s back to the breath mints…
One final note—all this math has to be approved by a judge before anyone heads off to the bank with their checks.
First Yamaha ATV Negligence Settlement. Bit of a landmark decision this week. Precedent setting, possibly. It was the first successful outcome of a personal injury suit filed against Yamaha over its notorious Rhino ATVs or UTVs.
The McTaggarts filed the lawsuit against Yamaha alleging that Roger suffered a crushed leg when his Rhino rolled over while he was riding it at low speed. His injuries are permanent and serious, and the suit alleges, result from defective design of the Rhino 660.
The jury found Yamaha guilty of negligence, and awarded the McTaggarts $317,000. Now, there are apparently hundreds of similar cases pending in numerous states across the US. People have been killed on these things. So this decision is very good news indeed.
Ok. That’s it for this week. See you at the bar! (don’t forget your gum!)