Yesterday we took a look at some of the factors which help keep trustees, with all their discretionary powers, in line. First, a classic trustee has no personal interest in his decisions. Second, he is held to the “highest duty known to law” – a fiduciary duty. Third, he cannot unilaterally assume his discretionary powers; [..]
Yesterday I discussed some basics about how trusts and trustees operate. Trustees have a lot of power when the trust instrument gives them discretion to apply their own judgment about what’s the best thing to do with trust property, so much power that a judge will defer to the trustee’s judgment unless an “abuse of [..]
Here’s a pleasant thought experiment: imagine you are a trust-fund baby. Very rich (and dearly departed) parents have provided for you with a generous trust fund. You are set for life! The trust fund, however, is not just a pile of money you can play with at your whim. In fact, the whole point of [..]
The Washington Examiner gets it: “Most shocking to the conscience, however, might be the special protection big government provides for insurers covering patients through employer-sponsored plans: even if an insurance company’s negligent denial of coverage causes harm or death, federal law protects insurers from legal liability.” [Updated 8/20/2009 to include quote from article].
If you are around my age you probably remember cooling your heels in the pediatrician’s waiting room (this was before ERISA so we had real insurance in those days), passing the time reading Highlights magazine. Highlights featured Goofus and Gallant, two characters depicting basic moral dichotomies. Goofus broke the rules; Gallant obeyed. But they never [..]
In December 1990, Rhonda Bast was diagnosed with cancer. At least she was not among the uninsured: she had health insurance, provided by her employer. When her doctor requested approval for a procedure which might save her life, Prudential Insurance Company said no. After Ms. Bast got lawyered up, Prudential changed its mind a few [..]
The Wall Street Journal makes the point that “nine out of 10 people under 65 are covered by their employers.” Ninety percent of the under-65 population thinks they have insurance, except they don’t.
It is them. Write your congressman! There’s still time to have an impact and maybe get some consideration of tweaking ERISA into a health care bill. As long as the insurance industry (appropriately) is wearing the black hat now is the time to move. Especially if the public option is defeated, then we’ll need another [..]
Earlier I described some of the effects ERISA has on your ability to take your insurance company to court if it wrongfully denies your claim. That may not seem like such a big deal; after all, no one plans on going (or wants to go) to court at all, and it seems way, way down [..]
First post — welcome! ERISA is the Employee Retirement Income Security Act, and it is codified in Title 29 of the United States Code, starting with section 1001. It’s federal law, enacted in 1974, and it was supposed to protect employees’ rights in connection with their pension plans and benefit plans (health, disability, life insurance, [..]