9th Circ. Says Insurer Has No Claim On Death Settlement

Law360, New York (March 14, 2017, 5:14 PM EDT) -- The Ninth Circuit on Monday ruled a health insurance company isn't entitled to funds from a wrongful death settlement reached by relatives of an insured, upholding an Arizona federal court's ruling that because the estate of the deceased wasn't involved in the settlement, MedCath couldn't state a recovery claim.

In its four-page, unpublished opinion, the court said that while the $500,000 MedCath Corp. spent on care for Tracie Stratton would entitle it to recover from a settlement reached by her, per the terms of her plan, that right of recovery doesn't extend to her children. The children reached the wrongful death settlement...

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