Disability insurance attorneys Greg Dell and Alex Palamara explain that under ERISA-governed group disability policies, a claimant cannot file a lawsuit immediately after a disability insurance denial. The law requires claimants to first file an administrative appeal with the insurance company and exhaust all internal remedies before suing.
Alex notes that even though many claimants want to “just sue,” the appeal must be completed first because the court will not accept a lawsuit without it. Greg adds that this rule was created to reduce litigation costs and keep insurance premiums lower.
Despite frustrations, the attorneys say the appeal process can be effective—many appeals are won, preventing the need for costly lawsuits. However, they emphasize that many denials should not happen in the first place, and their firm assists large numbers of claimants through these required disability insurance appeals.