Fiduciary duty and litigation

Fully insured plans are still subject to ERISA

Originally posted by

I've heard brokers tell clients that their plan isn't subject to ERISA because it's fully insured.

That's not how any of this works.

Fully insured plans are subject to ERISA. The insurance contract is subject to state regulation. These are not the same thing, and conflating them leads to some very expensive surprises.

Know your plan. Know your obligations. Know your advisor.

Originally posted on LinkedIn, where the discussion and source links live in the comments.

About the author

Chris Vanderwolk is Director of Compliance and Innovation at OneDigital | Kistler Tiffany Benefits General Agency, where he helps brokers and employers navigate the regulatory complexity of employee benefits. An ERISA attorney with more than 19 years in the benefits industry, he specializes in translating what the law actually requires into language people can use.

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