Does ERISA help protect consumers in life, disability, and health insurance claims?
No. To sue for denied benefits you may have to show the insurance company s denial of benefits was “arbitrary and capricious” which is harder to prove than ordinary negligence. It requires showing the insurance company was completely unreasonable. Insurers use this rule to their advantage in denying legitimate claims. You are also prohibited from seeking punitive damages. Therefore, the insurance company may deny benefits and hold on to their money, knowing their worst case scenario is that will have to pay benefits.
