Insurer Estopped From Decreasing Benefits After Paying Out Larger Amount For Years

An insurance company that read its policy wrong and for years paid out more in disability benefits than the contract required is estopped from changing its mind, a federal court in Ohio held. The case is Jefferson-Pilot Life Ins. Co. v. Kearney (S.D. Ohio January 26m, 2006).
The court found that the insurer made several factual misrepresentations that the insured relied upon. Key quote: “If the insurer is saddled with coverage it may not have intended or desired, it is of its own making.”

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