Clarcor sues insurance provider

Filtration company files claim after employee accrued $637,500 in 2009 medical costs

Email | Print By J.R. Lind

Franklin-based Clarcor Inc. is taking one of its insurance companies to court, saying it's due nearly $400,000.

The oil-filter manufacturer filed suit this week in federal district court against Madison National Life Insurance, alleging the insurance company is refusing to pay $387,500 in an excess-loss claim.

Clarcor filed the claim after one of its employees accrued $637,500 in medical bills in 2009. Clarcor's policy with Madison National covers medical-benefits losses in excess of $250,000 per employee annually.

Madison National, though, points to a provision in the policy which exempts it from paying a claim for an employee not offered COBRA coverage when eligible. Clarcor says its corporate policy is to keep employees on short-term disability for six months after federally mandated family and medical leave is exhausted.

Jason Fisher of Waller Lansden is Clarcor's local representation.