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May 1, 2001
Employer Pays $175,000!
Payout to employee after employee's voluntary cancer policy lapsed under
cafeteria plan.
Dumontier v. Ray Lower & Assoc. (Ct. App. Ark. 2001). Excerpt: "Employers
that offer voluntary benefits can be held responsible for negligent
administration. This case also sends another message to both employers and
sellers of insurance products: be on guard about possible lapses of
coverage whenever there is a change in carriers." (Employee Benefits
Institute of America - BenefitsLink March 27-28, 2001)
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