Almost ALL disability insurance policies purchased through your workplace are ERISA Preempted. These claim cases require specialized attention and a different approach than non-ERISA cases.
ERISA Preemption means your protections against extraordinary losses due to fraudulent and bad faith claims denials are eliminated. While they are still obligated to pay your legitimate claim, your insurance company is immune from damages caused by even the most criminal of claims denials.
ERISA Preemption deprives you of your constitutional right to a jury trial. That means you have NO leverage or bargaining power to simply compel your insurer to pay even the most obviously legitimate disability claims (such as spinal injuries).
Under ERISA even if an insured is forced into bankruptcy, loses their home and exhausts all retirement savings, he/she cannot recover a dime for any of these losses.
Punitive damages cannot be awarded in an ERISA Preempted claim EVEN if an insurer is guilty of the most outrageous conduct imaginable in its claims denial practices.
Insurance companies routinely target high-end ERISA claimants for denials because the insurers know there’s virtually NOTHING an ERISA claimant can do about it. You basically lose your ability to fight back.
Employers virtually NEVER go to bat for employees in work-place based claims denial problems. Employers are more interested in keeping their premiums low. Insurers can obviously offer lower premiums if they know they don’t have to pay legitimate.