A Sonoma County, California, woman has filed a civil action lawsuit against Unum Life Insurance Company, alleging the company wrongfully denied long-term disability (LTD) benefits under her employer’s plan. 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.

Plaintiff Janet B. recently became well acquainted with the allegedly unfair disability insurance claim denial practices Unum has been accused of employing for years when she tried to claim disability after her Lyme disease left her unable to work.  This alleged red tape also serves as the foundation for the growing number of bad faith insurance lawsuits being filed against Unum Insurance. Janet filed her own Unum bad faith insurance lawsuit on Dec. 12, 2014.

Janet alleges in the lawsuit that her former employer contracted with Unum Insurance to provide long-term disability benefits to full-time employees. According to the Unum claim denial lawsuit, Janet filed a long-term disability claim with Unum in April 2012 and was initially provided disability insurance payments through Unum, who determined that the disability commencement date was actually September 2011.

However, in December 2013, Unum allegedly wrote Janet and informed her that they had determined she was no longer disabled and could return to her former employer. Janet appealed and provided Unum with medical documentation of her long-term disability but was denied further benefits without explanation from her Unum LTD policy, the Unum lawsuit claims.

Even though she provided overwhelming medical proof, including opinions from her primary treating physician and from a specialist in Lyme disease, Unum Insurance denied her claim for LTD benefits, the Unum lawsuit says. Janet also alleges that Unum Insurance has violated ERISA by refusing to provide a prompt and reasonable explanation for denial of her benefits.

Unum Bad Faith Insurance Practices

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; however, many people might be in for a rude awakening when they finally attempt to cash in on their disability insurance.

Unum is the largest disability insurance company, providing disability insurance for more than 17 million Americans. Unfortunately, for their policyholders, Unum has been accused of denying legitimate disability claims from seriously ill customers. This is a bad faith insurance strategy designed for one purpose – to boost profits.

Unum policyholders have reported that Unum Insurance 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 since experienced grievous losses as a result of Unum’s illegal practices.

Unum Lawsuits

Unum disability lawsuits are personal injury cases that seek compensation for individuals who have 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 (not limited to) Provident Life and The Paul Revere Life Insurance Company.

Janet B. is seeking payment of all LTD benefits withheld from December 2013 onward with interest and continued payment of LD benefits as well as attorney’s fees and cost.

The Unum Bad Faith Insurance Lawsuit is Case No. 3:14-cv-05433-MEJ, U.S. District Court Northern District of California.