UnumProvident Lawsuits
With 25 million policyholders nationwide, UnumProvident is the nation’s largest disability insurance carrier. The company is facing investigations focused on their claims process in at least three states - California, Georgia, and Florida. UnumProvident’s claim process allegedly targets long term disability policies for cancellation.
California Jury Finds UnumProvident Breached Duty of Good Faith
A California jury awarded a policyholder $31.7 million after he was denied long term disability benefits. He was awarded $1.7 million for past and future disability benefits and emotional distress. $30 million was awarded for punitive damages.
UnumProvident was found to have breached its duty of good faith and fair dealing. The jury found that the insurance company had acted with fraud and malice in denying the policyholder long term disability benefits.
Additionally, in November 2002, a federal judge in California stated UnumProvident had "a comprehensive system for targeting and terminating expensive claims."
UnumProvident denies all wrongdoing and is appealing the verdict.
UnumProvident Fined in Georgia
After an 18-month investigation, Georgia officials fined UnumProvident $1 million and put the company on probation for a 2-year period. The Georgia Insurance Commissioner hopes the order will change the company’s corporate policy from “systematically looking for any possible shred of data or excuse to deny a policy” to being "required to maintain a certain level of fundamental fairness."
The order calls for the following changes:
- claims processors can not overrule the decisions of highly-trained specialists such as doctors
- the company must better explain the policyholders right to appeal after the policyholder is denied benefits
- record keeping must improve
- during probation the office of the Georgia Insurance Commissioner will continue to investigate UnumProvident’s claims process. This investigation will include claims that have been denied and complaints made by policyholders.
Although UnumProvident denies it targets policies for cancellation, the insurance carrier agreed to the settlement and is cooperating with officials.
Denied disability insurance benefits? Put our experience to work for you
If you are unable to work, and are being denied benefits, you should have one of our attorneys review the specifics of your case. Our attorneys are trained to interpret the criteria set by the insurance companies for benefits. In many cases, people who initially have been denied disability benefits often receive benefits after an attorney reviews their case.
Free Legal Evaluation
Are you unable to work due to an injury or illness? Have you been denied disability benefits by an insurance company? Contact our law firm today for a free legal evaluation of your disability claim. You can contact us by:
- Filling out a simple online form so we can evaluate your claim
- Calling toll free 1-866-867-9914. Our phones answer 24 hours a day/7 days a week
Our law firm will evaluate your claim free of charge and advise you on your legal rights to collect compensation. There is no obligation to use our services, and there is never a fee unless we get money for you.
Sources:
Oster, Christopher. "UnumProvident Faces Jury Award In Disability Case" The Wall Street Journal. 27 January 2003.
Appleby, Julie. "UnumProvident to pay $1M fine in Ga." USA Today. 19 March 2003.
