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United of Omaha Loses in 1st Cir. Over ERISA Fiduciary Status

Oct. 4, 2022, 7:29 PM

United of Omaha Life Insurance Co. must face ERISA fiduciary breach claims by a widow seeking $100,000 in excess life insurance, according to a First Circuit decision taking an expansive view of fiduciary status under the statute.

If an insurer has discretion to choose when to accept premiums from an employee and when to determine if an employee is eligible for coverage, then it can be a functional fiduciary subject to liability under the Employee Retirement Income Security Act, the US Court of Appeals for the First Circuit said. It aligned itself with rulings from the Fourth and Eighth circuits ...