Lacko v. United of Omaha Life Ins. Co.

DeBofsky Sherman Casciari Reynolds P.C won a decisive ruling from the United States Court of Appeals for the Seventh Circuit in Lacko v. United of Omaha Life Insurance Company, a case involving disability benefits. The court ruled the disability insurer, Mutual of Omaha, failed to address the issue of Shirley Lacko’s ability to work as a CPA/auditor and mischaracterized her occupation when it denied benefits.

The court also highlighted Mutual of Omaha’s conflict of interest that “exists when the administrator has both the discretionary authority to determine eligibility for benefits and the obligation to pay benefits when due.” The court was also critical of the insurer’s failure to consider a favorable Social Security disability insurance decision and the evidence that lead to the award of those benefits. In sum, the court refused to accept Mutual of Omaha’s “selective consideration of only the evidence that supports one outcome.”