Michigan law

Long-Term Disability & ERISA Laws in Michigan.

Most private long-term disability (LTD) insurance is employer-sponsored and governed by ERISA, which preempts state contract and bad-faith claims. ERISA claims must exhaust internal appeals and are reviewed under a deferential standard if the plan grants discretion. Individual (non-ERISA) policies are governed by Michigan contract law with access to state-law bad-faith and penalty interest under MCL § 500.2006.

Last verified: 2026-04-17

State law

Key Michigan Statutes

ERISA (29 U.S.C. § 1001 et seq.)29 U.S.C. §§ 1132(a)(1)(B), 1133

Governs most employer-sponsored LTD plans. Provides federal cause of action but preempts state-law remedies. Claimants must exhaust administrative appeals.

Standard of ReviewFirestone v. Bruch, 489 U.S. 101 (1989)

De novo unless the plan grants the administrator discretion; then abuse-of-discretion applies. Courts consider conflicts of interest where the insurer is both decision-maker and payer.

Individual Policy Bad FaithMCL § 500.2006

For non-ERISA individual LTD policies, Michigan's UTPA provides 12% penalty interest for untimely payment.

State law

Official Sources

U.S. Department of Labor — EBSA Michigan DIFS

Not Legal Advice

This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Michigan.

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Long-Term Disability & ERISA Laws in Michigan.

Key Michigan Statutes

Official Sources

Not Legal Advice

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