What are the implications of the term "abuse of discretion" and "arbitrary and capricious" in the context of an insurance policy review?

MultiRegion, United States of America

The following excerpt is from Honda v. Sunshine Biscuit Long Term Disability Plan, 125 F.3d 858 (9th Cir. 1997):

1 The terms "abuse of discretion" and "arbitrary and capricious" are used interchangeably. Taft v. Equitable Life Assurance Soc'y, 9 F.3d 1469, 1471 n. 2 (9th Cir.1994).

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