Opinion ID: 164970
Heading Depth: 3
Heading Rank: 2

Heading: Substantially Affects the Risk Pooling Arrangement

Text: 69 In Gaylor, we stated that Oklahoma's bad faith law does not regulate the spreading of policyholder risk. 112 F.3d at 466. Our analysis continued: 70 A law which defines the manner in which insurance claims should be processed declares only that, whatever terms have been agreed upon in the insurance contract, a breach of that contract may in certain circumstances allow the policyholder to obtain [consequential and] punitive damages. Pilot Life, 481 U.S. at 51, 107 S.Ct. 1549. Such a law thus does not effect a change in the risk borne by insurers and the insured, because it does not affect the substantive terms of the insurance contract. On the other hand, a law mandating that a certain disease be covered under health insurance contracts would effect a spread of risk, both from insureds to insurers, and among the insureds themselves. 71 Id. (emphasis added). 1 We hold that the reasoning of Gaynor and Conover are still binding upon us and that Oklahoma's bad faith claims do not fall within ERISA's savings clause. But see Kidneigh, 345 F.3d at 1191 (Henry, J., concurring in part and dissenting in part). We affirm the district court's grant of summary judgment on this issue.