A Colorado resident filed a bad faith insurance lawsuit against Unum Life Insurance Company alleging the company wrongfully denied her disability insurance benefits. The plaintiff claims that not only did Unum cut her long-term disability benefits short, but that they ignored further evidence supporting her disability status.

Background on Unum Lawsuit

Plaintiff Katherine S. filed the Unum lawsuit after the disability insurance company allegedly practiced bad faith insurance denial by denying her long-term disability benefits. She had two disability insurance benefit plans with Unum and paid the premiums for both on time since September 1992, according to the Unum lawsuit. 

In January 2009, Katherine was reportedly diagnosed with endometrial cancer and began receiving long-term disability benefits from Unum. In May 2009, she received a letter confirming her disability insurance benefits. However, in December 2012, she received a letter stating, “to help us administer your claim, we would like to meet with you.” Katherine’s lawyers responded saying that there was no need for a meeting as the plaintiff was currently “satisfied” with her long-term disability benefits.

Unum responded by saying, in February 2013, that Katherine’s long-term disability benefits were to be discontinued because, “her request for eligibility and benefits under the total disability provision of the policies is continuing and ‘therefore still pending’,” states the Unum lawsuit, even though it had been years since she originally applied and was granted disability insurance benefits. 

When Katherine did ultimately meet with the Unum representative to discuss these events, she clearly described her disabilities caused by endometrial cancer. The Unum lawsuit claims that due to her condition, Katherine slept more, worked less, did not travel or do many other components of her original job, and had a low white blood cell count.

The Unum representative “was advised that fatigue continues to plague the Plaintiff and that she simply lacks the cognitive capacity to perform the occupation she performed prior to her diagnosis,” the Unum lawsuit states.

Katherine was also not required to pay for premiums during her disability according to her long-term disability benefits contract. However, Unum allegedly told her in July 2013 that her disability insurance benefits no longer applied and that she would have to pay for the premiums.

Disability Insurance Lawsuit: Unum Wrongfully Denies Benefits

This notification followed a written intent stating that Katherine’s benefits were being discontinued even though no adequate evaluation was performed and no consideration given for the medical evidence submitted by Katherine’s treating physicians and herself, according to the Unum lawsuit.

Although she appealed this denial, Unum maintained their stance. These actions are what many, including Katherine, have deemed bad faith insurance practices.

Katherine is filing this Unum lawsuit with claims of breach of contract, unreasonable denial of insurance benefits, and bad faith breach of an insurance contract. Katherine is one of hundreds of people who have allegedly been wronged by Unum.

This Unum Lawsuit is Case No. 1:15-cv-01266, in the U.S. District Court for the District of Colorado, Boulder County.