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Court Determines Reliance Standard Abused Its Discretion On Remanded Claim

Wednesday, December 28th, 2011

Reliance Standard Insurance apparently failed to appreciate guidance from the Court, where it had previously remanded a claim back to perform an appropriate review of the claimant’s eligibility for long term disability insurance benefits. Initially, the Court remanded the claim to Reliance Standard, permitting the claimant to supplement the record with evidence of his job responsibilities, and further medical support.

Upon review of the remanded claim, the Court determined that Reliance Standard abused its discretion, on the basis of a number of factors. This included the selective review of medical evidence by Reliance Standard’s hired paper only reviewing doctors, the failure to perform an examination of the claimant, instead relying solely upon paper only medical reviews the rejection of all subjective and self reported information from the claimant, and the flawed vocational review performed by Reliance Standard.

This combination of factors led the Court to conclude that Reliance Standard’s rejection of the claim for long term disability insurance benefits was an abuse of discretion, and awarded the claimant back benefits, and the ability to seek attorneys fees.

Kelly v. Reliance Standard

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