Employee Benefits Attorney on a Mission to End Discrimination Against New Mothers by Long-term-disability Insurers Files Lawsuit Against Reliance Standard Life Insurance
Media Contact: Barbara M. Fornasiero, EAFocus Communications; barbara@eafocus.com; 248.260.8466
Royal Oak, Mich.—August 5, 2024—John Joseph (J.J.) Conway, principal attorney and founder of J.J. Conway Law, is on a mission to end discrimination by long-term-disability insurers against mothers whose disabilities are pregnancy or post-pregnancy related. Today he filed a lawsuit against Reliance Standard Life Insurance on behalf of a woman employed at a private Detroit-area university who was denied the long-term disability insurance after repeated claim denials for a debilitating health issue that arose immediately following delivery in what had been an otherwise healthy pregnancy.
Pregnancy itself is not considered a disability under the Americans with Disabilities Act (ADA). Pregnancy and complications that may arise during pregnancy are typically covered under short term disability and FMLA, which provide temporary coverage and protections due to accidents or illness. Though there are some exceptions, long-term disability (LTD) insurance – dominated by a few large insurance industry providers – typically does not apply to what the insurer it deems pregnancy-related claims.
“Imagine how shocked these employees are to discover the long-term disability coverage they purchased through their employer does not include the many conditions and illnesses that are a direct result of a pregnancy. In the world of employee benefits, it’s one of the last remaining, ‘acceptable’ forms of discrimination against women and pregnancy – and it needs to change,” Conway said. “Women should be able to access their LTD coverage just as they would in any other medically applicable situation,” Conway said, adding that approved benefits typically range from 50-70% of the insured’s salary, depending on the policy. “That’s a significant amount of money withheld solely on pregnancy-related discrimination grounds, especially considering it may be their only source of income for the rest of their life.”
Background of Complaint
The Complaint alleges that Reliance Standard has a long history of abusive practices against the occupationally disabled and denied the disability claim of a woman who developed an acute medical condition after the successful delivery of her newborn child. The Complaint states that medical experts agree that the condition was acute and spontaneous, and she had never before received treatment for the condition. As such, the Complaint states Reliance Standard defaulted to the pregnancy exclusion to deny benefits. Through the Complaint, Conway is asking the Court to look at precontractual marketing practices of Reliance Standard.
“Did Reliance Standard inform the private university in this case during the sales and purchasing process that its insurance specifically excluded coverage for pregnant women? Did the university tell Reliance Standard it maintains that pregnancy is a preexisting condition? Did Reliance tell the university that it had previously faced litigation over this issue – and lost? These questions are critical to our case,” Conway said.
Caution to Employers
Conway cautions employers to review contracts closely when purchasing disability insurance for employees. He has represented other women through his employee benefits practice where pregnancy resulted in long-term side effects that weren’t present until after delivery and impacted their ability to return to work and earn a living after their maternity leave or short-term disability insurance ended. The current law that allows such a practice is anachronistic and must be changed, according to Conway.
“One of the first questions an employer should ask of a disability insurance company is, ‘do any of the terms of your policies exclude coverage for pregnant women?’ If the answer is ‘yes,’ employers should make the right choice for their workforce and move on to an insurance company that doesn’t discriminate,” Conway said. “It is only a matter of time before a federal court decides that the use of insurance contracts that discriminate against women in the workplace breaches the employer’s fiduciary duties to its workforce.”
About J.J. Conway Law
J.J. Conway Law, an employee benefits litigation and ERISA firm founded by John Joseph (J.J.) Conway in 1999, represents those seeking full access to the employee benefits they earned and are legally entitled to. The firm has been involved with nationally significant employee benefit, disability and pension cases, including class action lawsuits for such landmark decisions as requiring Michigan private insurers to cover autism health treatments for children through age 18 and protecting the pension rights of City of Detroit employees, police and firefighters as well as Wayne County employees by holding their trustees accountable for investment decisions. The firm’s motto, Conquer Tomorrow®, is dedicated to making the future easier for their clients across the United States. Learn more on the firm’s website.