Julie P. Apter, Author at The Insurance & Reinsurance Report

Logical Construction: Federal Court Relies on Practical Considerations in Finding No Coverage for Lost Future Earnings

In 3M Co. v. National Union Fire Insurance Co., 2015 U.S. Dist. LEXIS 131197 (D. Minn., September 28, 2015) a federal judge for the District of Minnesota determined that a policyholder was not entitled to coverage for earnings on its investment in a trading company engaged in a Ponzi scheme because it did not own the earnings.

The policyholder invested its employee-benefit plan assets in the trading company. The investment took the form of a limited partnership in the trading company. In 2009, …

October 28, 2013 Life, Health, Disability & ERISA

Supreme Court Wonders if ERISA Decision in Heimeshoff v. Hartford Will Matter

Oral argument was heard on October 15 in the case of Heimeshoff v. Hartford Life & Acc. Ins. Co.. Briefly, the relevant background of this case is as follows: In August 2005, Heimeshoff filed a claim with Hartford Life & Accident Insurance Co. (Hartford) for long term disability benefits and Hartford denied her claim in December 2005. After retaining counsel and several evaluations by other doctors, Hartford denied Heimeshoff’s claim again in November 2006. Heimeshoff appealed the decision, but Hartford upheld its denial in …

May 1, 2013 Life, Health, Disability & ERISA

Seventh Circuit Rules 401K Provider Not a Fiduciary Under ERISA

Leimkuehler v. American United Life Ins. Co.
7th Cir. Apr. 16, 2013

In this case, the practice involved plan participants who invested in mutual funds through a service provider. The use of the service provider allowed the plan participants to indirectly invest in mutual funds by placing their investment into a separate account that was controlled by the service provider. The service provider received revenue sharing payments from the selected mutual funds, for its administrative services.

The plan trustee sued the service provider alleging that …