Courts consider COBRA claims involving insurer liability and whether improper notice extends election and continuation periods

Article Abstract:

The district courts in two federal cases ruled in favor of the employer regarding post-employment health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). In Allen v. Loyola University, the court ruled that no continuing contractual agreement existed between a former employee and the employer's insurer. In Disabatino v. Disabatino Brothers, Inc., the court levied a fine against the employer for failing to give notice that COBRA coverage would be terminated but did not find that coverage had to continue.

Retirement benefits

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Statutory COBRA notice is insufficient notice for spouse of incompetent employee

Article Abstract:

The facts giving rise to Meadows v Cagle's Inc were that the spouse of an incompetent former employee declined to exercise her COBRA rights in a timely fashion and that the insurance company declined coverage. The judges held that giving the plaintiff just a COBRA notice was insufficient, and that only if he had been given the plan documents could he have made an informed decision on the employee's behalf.

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Court holds that employer breached fiduciary duty by failing to provide a COBRA notice to a terminated employee

Article Abstract:

The US District Court of Southern New York in 1997's Carner v. MGS and its sister case held that the terminated plaintiff was not given adequate notice under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The court found that the defendants, which it treated as a single employer, breached their fiduciary duties by not following COBRA rules. Testimonial evidence supported the plaintiff.

Laws, regulations and rules, Fiduciary duties

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