Evan Schwartz Applauds Recent Ruling by New York State to Invalidate Discretionary Clauses


Our Firm Believes Thousands of Policyholders Will be Aided by Decision.

In a landmark ruling, the New York State Insurance Department has taken critical action to help thousands of New Yorkers who file health and disability insurance claims under policies purchased by their employers. In issuing a Circular Letter, the Department has determined that it will invalidate all clauses in all existing group insurance policies that contain “discretionary clauses”.  These clauses have been used by insurance companies to shield their decisions to deny claims from scrutiny by the courts.  Until now, federal courts – addressing such claims under ERISA – have maintained a “hands off” policy and upheld the denial of health and disability claims unless the decision was “arbitrary and capricious”.

“The impact of this action is tremendous,” said Evan Schwartz, Founder of Schwartz, Conroy & Hack formerly known as Quadrino Schwartz in Garden City. “Cases under ERISA will now be litigated more fairly, much more quickly, and at less cost to all New Yorkers,” he said.  Under the ruling, federal judges will now decide for themselves whether a claim should have been paid, rather than merely rubber stamping the decision of an insurance company. “This ruling is a major step toward ensuring that the New York workforce gets a fair chance in court when insurance companies deny or terminate a claim,” said Schwartz. At the end of the day Evan Schwartz Applauds Recent Ruling.

Schwartz, Conroy & Hack is a nationally recognized law firm that litigates ERISA and other insurance claims on behalf of policyholders. For more information on Schwartz, Conroy & Hack, please visit contact us or call us at (800) 745-1755.

Schwartz, Conroy & Hack is the premier disability insurance law firm in the United States. To see how we can help you, contact us.


Evan S. Schwartz
Founder of Schwartz, Conroy & Hack