N.Y. Law Limiting Insurer Rights Upheld by Second Circuit

A New York law making it harder for insurers to claw back previously paid benefits is enforceable and isn’t preempted by federal benefits law, the U.S. Court of Appeals for the Second Circuit ruled (Arnone v. Aetna Life Ins. Co., 2d Cir., No. 15-02322, 6/22/17).

As a result, Aetna won’t be able to offset a New York man’s disability benefits to account for money he received in an $850,000 personal injury settlement.

The June 22 decision builds off a 2014 ruling by the Second Circuit, which first held that the New York law wasn’t preempted by the Employee ...