Frank asked his company's employee benefits director if his group health coverage could be converted to individual coverage.The benefits director said,"Yes,you can convert to an individual policy,and the coverage is identical to your group coverage." Frank quit his job and converted to an individual policy.Six months later he filed a claim.He was dismayed to learn the conversion policy was limited compared to the group coverage,and his claim was denied.What legal doctrine will allow Frank to bring a successful legal action against his former employer because he was financially harmed due to his reasonable reliance upon a representation of fact?

Question

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The legal doctrine that applies in this case is estoppel. Estoppel is a legal principle that prevents a person from denying or asserting an inconsistent position or fact from that which has been established as the truth. In this case, Frank reasonably relied on the representation made by the employee benefits director that the conversion policy would be identical to the group coverage. Based on this reliance, he converted to an individual policy and was financially harmed when he found out that the coverage was limited. Therefore, estoppel will allow Frank to bring a successful legal action against his former employer.

Frank Asked His Company's Employee Benefits Director If His Group