In Van Loo v. Cajun Operating Co, No. 14-cv-10604 (E.D. Mich. Sept. 17, 2015), the Eastern District of Michigan, a Sixth Circuit district court, held that the requirement for evidence of insurability was triggered based on the total amount of insurance as opposed to the amount of supplemental life insurance. Additionally, while acknowledging a split between the Sixth and Ninth Circuits on the matter, the court found that there was no right to contribution or indemnification between co-fiduciaries under the Employee Income Retirement Act of 1974 (ERISA).
Factual and Procedural Background
Donna Van Loo was an employee of cross-plaintiff Cajun Operating Company d/b/a Church's Chicken (Church's). Church's provided life insurance to its employees, including Van Loo, through cross-defendant Reliance Standard Life Insurance Company (Reliance Standard). Church's acted as the plan administrator. The policy required that insureds submit an evidence of insurability (EIF) form for certain coverage elections to be effective. Van Loo never submitted an EIF. After her death, her parents, plaintiffs Donald and Harriet Van Loo, submitted a claim. Reliance denied benefits in excess of the guaranteed-issue amount.
The plaintiffs sued Church's and Reliance Standard. After...
