6th Circ. Backs Mich. Ban On Discretionary Clauses

Law360, New York (March 20, 2009, 12:00 AM EDT) -- A federal appeals court has upheld a lower court’s ruling that the Michigan Office of Financial and Insurance Services can enforce a rule prohibiting discretionary clauses in insurance contracts despite objections from trade groups that the rule was preempted by the Employee Retirement Income Security Act.

The U.S. Court of Appeals for the Sixth Circuit granted summary judgment in favor of the OFIS on Wednesday, agreeing with the U.S. District Court for the Western District of Michigan that the regulation was not preempted by ERISA, as...
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