A Michigan resident has filed a bad faith insurance lawsuit against Unum Insurance, alleging the company wrongfully terminated his long-term disability benefits (LTD). Most people believe their LTD benefits cover injuries that are work-related only. However, it is estimated that more than 95 percent of LTD claims are non-work related, such as chronic diseases, mental illness, and even cancer.

If a person is denied disability benefits, they can either accept that decision or appeal for another review by the insurance company. However, the insurance company must explain to policyholder the reason for their denial. However, countless Unum Insurance policyholders like plaintiff Les G. have experienced Unum bad faith insurance practices, which occurs when the insurance provider allegedly uses illegal tactics to deny appeals or terminating benefits all together.

According to the Unum lawsuit, Les at one time owned a successful auto parts business. However, he was unable to continue to work because of economic circumstances that led him to suffer from chronic major depression, a condition for which he was subsequently hospitalized and deemed permanently disabled by two psychiatrists from gainful employment in 2009.

The Unum lawsuit alleges the insurance company immediately began paying Les disability benefits under his Unum policy after he was discharged from the hospital and continued paying Les until his disability benefits were allegedly wrongfully discontinued in 2013. The Unum lawsuit claims Unum’s reason for terminating Les’ disability benefits depended on the fact that he “is able to perform the duties of his occupation” and is accordingly “not disabled.” Despite providing overwhelming medical proof, including numerous opinions from his psychiatrist and a nationally-renowned vocational rehabilitation expert, Unum Insurance denied Les’ appeal to reinstate his long-term disability benefits without legal justification, according to the disability insurance lawsuit.

Unum Bad Faith Insurance Practices

Unum (formerly known as Unum Provident and First Unum) has allegedly systematically denied Unum disability insurance benefits to thousands of policyholders during the past two decades. Unum and its subsidiaries, including Provident Life, The Paul Revere Life Insurance Company, and Colonial Life & Accident Insurance Company, have been subject to numerous bad faith insurance lawsuits for illegally refusing to pay valid disability claims. Some examples of Unum’s denial tactics allegedly include:

• Changing policies after claims are filed (and without the authorization or knowledge of policy holders)
• Improperly investigating the claim and obtaining opinions from unqualified people/supposed experts
• Misreading medical records, often by their independent medical examiners
• Demanding repeated requests for independent medical examinations or denying a claim without any medical examination
• Refusing to acknowledge their disability, especially mental disorders, fibromyalgia, and chronic fatigue syndrome
• Arguing that the claim is a pre-existing condition.
• Denying a claim with the intent to wear the claimant down to a lower settlement
• Partially paying a claim for total disability
• Use of detectives, friends, co-workers and neighbors in an attempt to discredit the disability

Unum Lawsuits

Unum has written disability insurance policies for approximately 17 million Americans, making it the largest disability insurance provider in the United States. However, according to numerous Unum lawsuits, it has allegedly denied countless valid insurance claims. Unum policyholders have filed insurance claim denial lawsuits against the insurance company for practicing bad faith insurance and wrongfully denying their Unum long term disability insurance.

In his Unum lawsuit, Les is seeking to recover payment of all LTD benefits due to him under the Employee Retirement Income Security Act of 1974 (ERISA) with interest and also continued payment of LTD benefits as well as attorney’s fees and cost.

The Unum Disability Benefits Lawsuit is Case No. 1:15-cv-00238-GJQ, in the U.S. District Court for the Western District of Michigan, Southern Division.