Unum Life Insurance Company of America is being sued in a bad faith insurance lawsuit by a Tennessee woman. Plaintiff Elizabeth W. alleges the insurance company refused to pay the long-term disability insurance benefits due per her employee benefits plans, and therefore violated the Employee Retirement Security Act of 1974 (ERISA).

Elizabeth reportedly worked as a word processor at Alburger Basso Degrosz Insurance Services Inc., an employer through which she was issued an Unum Group Long Term Disability Policy per the virtue of her status as an employee.

Due to a disability, Elizabeth stopped working sometime in June 1996, at which time she was covered under her Unum disability insurance lawsuit. She immediately applied for and ultimately received approval for Unum long term disability benefits. Elizabeth received her long term disability benefits insurance from Unum until April 2014, at which time Unum terminated her benefits.

Elizabeth appealed Unum’s decision to suddenly terminate her long term disability benefits and claims she has exhausted all forms of administrative remedies through Unum. Unum did briefly reinstate her insurance benefits for 45 additional days; however, these Unum insurance disability benefits were again discontinued beyond May 31, 2014.

To this day, the plaintiff allegedly remains disabled and fits the definition of disabilities outlined by the Unum disability insurance plans and policies. Elizabeth’s disability is supported by assessments and restrictions made by her treating physician.

According to the Unum bad faith insurance lawsuit:

“Plaintiff’s disability is further supported by results of a functional capacities evaluation finding she cannot sit more than five to ten minutes without need to alternate positions. Nevertheless, Unum found Plaintiff capable of performing sedentary work with the ability to stand and stretch after sitting for one hour, and therefore capable of returning to her past work as a word processor. Unum arbitrarily terminated benefits without any evidence of change or improvement in Plaintiff’s underlying medical condition.”

Elizabeth is seeking several forms of relief in this Unum bad faith insurance lawsuit, including damages for unpaid disability benefits, reinstatement of future disability insurance benefits by Unum, payment of attorney’s fees, and other relief so deemed by the court.

The Unum Bad Faith Insurance Lawsuit is Case No. 3:15-cv-00400, in the U.S. District Court for the Middle District of Tennessee.

Background on Unum Bad Faith Insurance Practices

According to allegations made by Unum life insurance policy holders, Unum allegedly engaged in cash flow underwriting practices for over two decades. Cash flow underwriting is a scheme that hinges on selling many life insurance policies without assessing the future risks for each potential policy holder.

Numerous Unum disability insurance lawsuits allege the insurance company made profits by taking the initial premiums and then investing them into the marketplace.

When the value of life insurance policies began to decrease, Unum allegedly began to undertake bad faith insurance practices in order to retain some profits from existing and future disability insurance claims. Bad faith insurance practices intentionally deny qualifying policy holders their long term disability benefits.

Even when policy holders like Elizabeth submit all appropriate paperwork and clearly demonstrate an inability to work due to their disabilities, Unum allegedly denies these individuals their disability insurance benefits. These Unum bad faith insurance practices still continue today, according to Unum lawsuits and Unum class action lawsuits.