A non-ERISA LTD Policy is a policy the consumer purchased directly from a long-term disability insurance carrier. A non-ERISA claim is not subject to the same strict ERISA fiduciary standards regarding exclusive benefits, but is subject to state law and other standards. If your long-term disability policy is not subject to ERISA, your disability insurance claim will require a different course of action.
There are very few exceptions for a group policy not to be governed by ERISA and those are individuals who work for governmental entities (local, county, city, state or federal), church plans (religious organizations), and if you purchase a long-term disability policy yourself.
If your long-term disability policy is not governed by ERISA, you have a wide range of action you can take. These types of policies are governed by state law. You can sue the disability carrier for insurance bad faith. You will be able to have a jury trial and you may even be able to recovery punitive damages.
