An Act for greater fairness in insurance policies

This bill would ban the use of discretionary clauses in insured benefit plans.  Discretionary clauses in insurance plans give the administrator, typically an insurer, almost limitless discretion to deny benefit payments. This standard is exceedingly difficult to meet and leads to the claims of many sick and financially vulnerable people being denied because they will be unable to successfully appeal a decision, thus increasing profits for the insurance company. If this bill were to pass, insurance companies would no longer be able to use the extraordinarily broad discretion afforded them under discretionary clauses to unfairly deny meritorious claims.  People who are ill and disabled would be better protected.  They would be able to pursue their claims in court and not need to prove that the insurance company acted “arbitrarily or capriciously.”