Carrington Estate Planning Services v. Reliance Standard Life Insurance

Carrington Estate Planning Services (“Carrington”) appeals the district court’s summary adjudication of its claim for benefits under the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. 1132(a)(1)(B). The district court based its grant of summary judgment on the finding that, as a matter of law, the notice-prejudice rule applicable to insurance policies under Rhode Island and Arizona law does not apply to a notice of disability requirement for extension of benefits under a life insurance contract’s waiver of premium provision. We hold that, because the insurance policy at issue is a contract of adhesion, the notice provision is part of the conditions requiring proof of claim filed within a certain time limit and enforcement of the provision would result in a technical forfeiture unrelated to the merits of the claim, the notice-prejudice rule under Arizona and Rhode Island law is applicable to the notice of disability requirement in the waiver of premium provision. We therefore reverse and remand for further proceedings.

FACTUAL AND PROCEDURAL HISTORY

Pursuant to a “viatical agreement,” 1 Walter Zipoy assigned to Carrington the *646 rights to receive benefits…