A Vermont woman has filed a disability insurance lawsuit against Unum Life Insurance Company, alleging the company wrongfully denied long-term disability benefits under her employer’s insurance policy.

Long-term disability benefits provide financial benefits to employees when they are unable to work due to a disability regardless of whether or not that illness or injury is work-related.

Unum Insurance policyholder and plaintiff Karen L. alleges in her Unum claim denial lawsuit she filed on Dec. 5 that she has been the victim of  unfair practices by Unum when the company denied her benefits claim.

Her former employer, Vermont Student Assistance Corporation, contracted with Unum Insurance to provide long-term disability benefits to full-time employees. According to the Unum claim denial lawsuit, Karen was unable to continue to work because of a re-occurrence of her Lyme disease and was denied long-term disability benefits from her Unum insurance policy.

Even though Karen provided overwhelming medical proof, including opinions from her doctor and from a specialist in Lyme disease, Unum denied her claim for long term disability insurance benefits. She also alleges that Unum has refused to provide a full and fair review of her long term disability insurance claim as well as concrete reasons for why the claim was denied.

Disability Insurance Claim Denials

Many Americans have faithfully had money deducted from their paychecks to pay for disability insurance benefits. They rely on this insurance to cover them in the event that they become disabled and cannot work.

Unum is the largest disability insurance company in America, providing disability insurance for more than 17 million Americans. However, Unum has allegedly denied legitimate disability claims from seriously ill customers. This is allegedly a corporate strategy designed to boost profits.

Unum policyholders have reported that Unum has illegally denied their disability claims by:

• Changing policies once claims are filed (and without the authorization or knowledge of policy holders)
• Improperly investigating the claim
• Misreading medical records
• Refusing to acknowledge their disability

Although the Department of Labor in 2005 mandated that Unum resolve its bad faith insurance practices, many insured parties have allegedly experienced grievous losses as a result of Unum’s illegal practices.

Unum Lawsuits

Unum disability insurance lawsuits are personal injury cases that seek compensation for individuals who have allegedly been victimized by Unum Insurance Group’s former bad faith practices.

The Unum Group was previously known as Unum Provident and currently includes a number of smaller subsidiaries, including Provident Life and The Paul Revere Life Insurance Company.

Karen is seeking payment of all long-term disability insurance benefits withheld with interest and continued payment of long term disability benefits as well as attorney’s fees and cost.

The Unum Bad Faith Insurance Lawsuit is Case No. 1:14-cv-00258-jgm, in the U.S. District Court for the District of Vermont.