Insurer Unum Group Reverses 42% Of Previously Denied Disability Claims

A multi-state settlement agreement with the Unum Group will provide consumers in 48 states and the District of Columbia with over $676 million in additional disability benefits. The agreement reverses nearly 42 percent of previously denied disability claims.

Details of the settlement

According to a press release from the Tennessee Department of Commerce and Insurance, the Unum Group and 48 states, plus the District of Columbia, have reached an agreement that will reverse nearly 42 percent of previously denied or terminated disability claims from 1997 to 2004 .

In addition to the reversals, which are estimated to total approximately $676 million, the agreement will also require Unum to make “significant changes in corporate governance such as adding three new directors subject to approval of state insurance regulators to its Board of Directors, implementing new claims procedures and standards for claims processing, enhancing and implementing new internal quality controls and requiring hands-on involvement of its Board of Directors in ensuring successful implementation of the new processes. The original agreement also included strong oversight, such as quarterly evaluations and monitoring the company by Tennessee’s insurance regulators as well as other lead states.”

To view the press release, go to: www.state.tn.us/commerce/documents/pr_UNUM_04302008.pdf/

What to do when your claim has been denied

Settlements like the one described above are rare. However, that doesn’t mean that consumers can’t fight back when their valid claim has been denied. According to legal experts, insurance companies often act in bad faith when they wrongfully deny valid insurance claims. Consumers can sue insurance companies when this happens and may be entitled to not only getting their claims paid, but also for damages that they may have incurred.

In many cases, consumers will be able to obtain their benefits by staying on top of their claim with persistence. However, litigation is sometimes necessary when insurance companies don’t act in good faith and deal with their customers fairly.

If your insurance company has wrongfully denied your valid insurance benefits, contact an attorney to discuss your situation. The consultation is free of charge, without obligation and strictly confidential. To contact a qualified attorney whose practice focuses in bad faith insurance litigation, please click here. We may be able to help.

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