Unum Humana Disability Insurance Class Action Settlement

A class action settlement was reached between Unum Life Insurance Company of America and Humana employees to resolve allegations that the insurer miscalculated the amount Class Members were supposed to receive in long-term disability benefits. If you were an employee of Humana and were receiving disability benefits from Unum, you may benefit from this class action settlement.

The Unum class action lawsuit was filed by plaintiff Mary Kemp in a Louisiana federal court in April 2014, alleging that Unum had miscalculated the benefits she was receiving through her long-term disability insurance policy she had through Humana because it did not include perpetuity payments from Humana when calculating her earnings.

Kemp argued in her Unum class action lawsuit that this was a violation of her policy with Unum and a violation of the Employee Retirement Income Security Act of 1974, also known as ERISA.

While Unum does not admit to any wrongdoing and contends that the perpetuity payments at issue are “commissions” and/or “other extra compensation,” which are typically excluded from disability insurance policies, it has decided to compromise by agreeing to this class action settlement.

This class action settlement is for “all current or former Humana employees who (1) received long-term disability benefits from Unum under the policy; (2) became disabled within the meaning of the policy” from May 1, 2002 through Oct. 31. 2013; “(3) received perpetuity payments from Humana; and (4) whose long-term disability benefit payment amount was calculated without including Perpetuity Payments as monthly earnings as defined  in the policy.”

Under the terms of the deal, Class Members are set to receive half of the additional money they would have received had the perpetuity payments been calculated as earnings when they began receiving their disability benefits, as well as interest on back benefits.

The perpetuity payments will be calculated based on what Class Members received the three months before they filed claims for disability benefits.

Class Members do not need to file a claim to participate in this Unum class action settlement.

Who’s Eligible

This class action settlement is for all current or former Humana employees who:

(1) Received long-term disability benefits from Unum under the disability insurance policy they had with the insurer;

(2) Became disabled from May 1, 2002 through Oct. 31. 2013;

(3) Received perpetuity payments from Humana;

(4) Whose long-term disability benefit payment amount was calculated without including Perpetuity Payments as monthly earnings as defined  in the disability insurance policy.

Potential Award

The amount each Class Member will receive will depend on what their perpetuity payments were the three months before they filed their claim for disability benefits. Class Members will receive half of that amount plus interest.

Proof of Insurance

No proof of employment or ownership of a disability insurance policy needs to be filed by Class Members. Humana and Unum already have these records.

Claim Form Deadline

Class Members will automatically receive benefits unless they exclude themselves by Sept. 25, 2015.

Case Name

The Unum Disability Insurance Class Action Lawsuit is  Kemp v. Unum Life Insurance Company of America, Case No. 14-944 Section G(3), filed in the U.S. District Court for the Eastern District of Louisiana.

Final Hearing

11/06/2015

Settlement Website

www.UnumClassActionSettlement.com

Claims Administrator

Class Counsel

Defense Counsel