No peace in quiet: What to consider as new lawsuits challenge voluntary benefits
In a new wave of lawsuits filed under the Employee Retirement Income Security Act of 1974 (ERISA), four employers were sued during the recent holiday season for allegedly breaching ERISA fiduciary duties regarding their voluntary benefits insurance offerings. The voluntary benefits at issue are accident insurance, critical illness insurance, cancer insurance, and hospital indemnity insurance. Let’s take a look at the important points employers should consider.
Allegations of excessive premiums
The four putative class action lawsuits generally allege that the employers and their benefits brokers breached their ERISA fiduciary duties and caused the participants to pay excessive premiums because they:
· Failed to engage in a prudent process when selecting the insurance offerings;