Prorating Bonus Over 12 Months Was Not Abuse Of Discretion, Majority Says
(November 18, 2015, 2:05 PM EST) -- SAN FRANCISCO — A disability insurer did not improperly prorate a claimant’s bonus over a 12-month period because its interpretation of the plan language in prorating the bonus was reasonable and consistent with how other variable income sources are calculated, a majority of the Ninth Circuit U.S. Court of Appeals said Nov. 13 in an unpublished opinion (Douglas B. Powell v. Hartford Life and Accident Insurance Co., No. 13-16529, 9th Cir.; 2015 U.S. App. LEXIS 19785).