Key legal question
Whether the cantonal court had to offer the insured a chance to be heard or withdraw the appeal after a pendente lite reformatio in pejus
Extracted holding
Yes. A worsening decision issued while the appeal was pending had to be treated as a mere proposal to the court, so the cantonal court had to give the insured an opportunity to comment or withdraw the appeal under Art. 61 lit. d LPGA.
Extracted reasoning
A new decision that aggravates the appellant's position before the authority submits its response does not end the dispute and lacks independent material force; the hearing guarantee in reformatio in pejus situations applies.