Manage Liabilities
A car dealership in South Carolina continued to pay premiums for a terminated
employee. The former employee incurred over $600,000 in medical insurance
claims.
The insurance company sued the employer, alleging breach of contract
and negligent misrepresentation under state common law. The district court
granted the carrier’s motion to remand because Carolina Care was not a fiduciary
under ERISA laws.
Because the carrier relied solely on the group administrator
to maintain and provide information regarding eligibility of employees, it
was not a fiduciary under ERISA. Thus the court remanded the case to state
court to resolve the remaining issues.
(Carolina Health Plan, Inc. v. Auddie
Brown Auto Sales of Florence, Inc.)