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9th Circuit overturns ruling that upheld insurer’s denial of LTD benefits

Posted On: Nov. 23, 2022 9:12 AM CST

A federal judge erred in upholding an insurer’s denial of long-term disability benefits on grounds that the insurer never raised when it denied the claim, an appellate panel held, Reuters reports. The 9th U.S. Circuit Court of Appeals on Nov. 21 reversed a win for Lincoln Life Assurance Co. of Boston, saying the trial court allowed the insurer to “effectively ‘sandbag’” Vicki Collier’s claim for benefits by challenging her credibility only after she filed suit, the report says.