Employee Benefits Administrators can make mistakes that cause the company to be liable for what the insurance company might have paid.
When our client retired from his long time employer he asked to stay on the group life insurance plan. The employer agreed and collected payments while he was retired. However, when he passed away, the insurance company denied the claim because he was not a full time employee eligible for coverage. The widow sued and the employer’s insurance policy paid the claim on behalf of the insurance company.
