Behavioral Sciences Institute v. Great-West Life
Court of Appeals of Washington
1Opinion of the CourtColeman, J.
In 1990 and 1991, Great-West Life (GW) contracted to provide administrative services and excess or "stop-loss” coverage to Behavioral Sciences Institute (BSI), who self-insured an Employment Retirement Income Security Act of 1974 (ERISA) Plan for its employees. In late 1988, BSI employee Elaine Sonntag-Johnson had discovered that she had a rare blood disorder requiring expensive treatment. GW refused to provide stop-loss coverage, claiming that the employee’s condition was not covered under the Plan and that BSI’s Plan administrator acted in bad faith by not disclosing the condition. BSI sued…
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