What's Happening?
A former portfolio manager at Sands Capital Management LLC, who claimed disability due to back pain, lost his lawsuit against United of Omaha Life Insurance Co. The U.S. District Court for the Eastern District of Virginia, presided by Judge Michael S. Nachmanoff, ruled that the insurer was justified in denying the claim. The decision was based on evidence of the manager's active lifestyle, which included a 10-day trip to Italy and playing 20 rounds of golf over three months in 2024. The court found these activities inconsistent with the manager's claims of disabling back pain.
Why It's Important?
This ruling underscores the challenges individuals face when claiming disability benefits while maintaining an active lifestyle. It highlights the scrutiny insurers apply
to claims, especially when claimants engage in activities that contradict their stated disabilities. The decision may influence how future disability claims are evaluated, potentially affecting the insurance industry's approach to similar cases. For policyholders, it serves as a cautionary tale about the importance of aligning lifestyle choices with claimed disabilities to avoid benefit denials.
