Suing your fund is irrelevant to the conversation. I'm not disputing that your fund had that policy, or that state laws may require that. I feel like you're misinterpreting the point.
last time i spoke to teamsters they were questioning me pretty firmly on why my wife is on their policy if she is working. assured me that if insurance is available through her employer no matter how expensive or poor it is she has to accept that and i need to remove her from my plan