Woodmen Accident & Life Insurance v. Bryant

McKAY, Circuit Judge.

Charles Bryant, a citizen of New Mexico, purchased a major medical policy from Woodmen Accident & Life Insurance Company in 1979. This policy did not provide coverage for institutional treatment of mental or emotional illness. In March of 1981, Mr. Bryant, at the suggestion of Woodmen’s agent, Mr. Jackson, changed insurance policies by applying for membership as a participant in a joint employer’s trust. Under this arrangement, a master insurance policy is issued to the trust. Employers with fewer employees than would qualify for group insurance by themselves join the…