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Urge Governor to Sign Bill Banning Discretionary Clauses

  • Synopsis: Published: 2010-09-08 - AB 1868 legislation bans discretionary clauses in group life and disability insurance contracts - Kantor & Kantor, LLP.

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California residents urged to e-mail Gov. Arnold Schwarzenegger asking him to sign AB 1868, legislation that bans discretionary clauses in group life and disability insurance contracts.

Kantor & Kantor, LLP, a law firm that protects the rights of insurance policyholders, joins California Assembly Member Dave Jones in the fight to hold insurance companies accountable to consumers by urging California residents to e-mail Gov. Arnold Schwarzenegger asking him to sign AB 1868, legislation that bans discretionary clauses in group life and disability insurance contracts.

Disability insurance pays benefits when policyholders become disabled and cannot work. Even if a doctor or the Social Security Administration says a person is disabled, these clauses allow insurers to deny benefits, and courts will only overturn the decisions if the court determines the insurer abused its discretion. The merits of the claim don't decide the case; rather, it is decided by how much deference the Judge gives the insurer's decision. AB 1868 will prevent insurers from placing discretionary clauses in policies they sell to California employers.

"I will never forget hearing Sandra Frost's tragic story about how her insurance company denied her disability benefits, despite her having paid the premium month after month," writes Assembly Member Jones in an announcement about the Legislature's approval of the bill. "Her doctor and the Social Security Administration certified that she was disabled. She was no longer able to work, but her insurance company denied her benefits and determined that she wasn't disabled. She lost her job, her house, her car and all of her life savings. She ended up on welfare. Discretionary clauses allow insurance companies to do this and we must put an end to it."

To send an e-mail to the governor in support of AB 1868, log on to and follow the link in the right-hand margin. The subject of the e-mail is "insurance issues/concerns." You can also find on the Kantor & Kantor web site a sample message to use to voice your support.

About Kantor & Kantor, LLP -Kantor & Kantor, LLP is one of California's most experienced and respected law firms dealing with the prosecution of claims against insurance companies. The firm represents clients whose insurance companies have failed or refused to pay claims arising from disability, health, life and other liability insurance claims. The firm also has extensive experience with the complex appeals procedure and federal court litigation of ERISA matters. For more information, log on to

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