Policy Authorized Plan’s Termination of Benefits, New York Federal Court Rules

Blogs, Erisa

An insurer that relied on a functional capacity evaluation (FCE) in deciding to terminate benefits under an ERISA plan was within its rights to do so, a New York federal judge ruled in VanWright v. First Unum Life Ins. Co., No. 09-Civ-1186, — F.Supp.2d —-, 2010 WL 3817545 (S.D.N.Y. Jul. 26, 2010). The plaintiff, who suffered back pain, had argued that the policy did not give the insurer the authority to consider an FCE. The court disagreed, holding that the insurer was within its rights to consider an FCE, and that its consideration in this case was reasonable.