Cigna Ordered to Pay $77M in Disability Claims

Unum and Cigna have both been accused of denying legitimate insurance claims. Cigna, part of the Unum Group, has finally had some of those claim denials catch up with them. A settlement agreement in five states means that Cigna has agreed to pay $77 million in “re-evaluated” disability denial claims. Three companies owned by Cigna are a part of the re-evaluation agreement reached on May 13, 2013. In addition to the $77 million to be paid to beneficiaries, there’s an additional $1.68 million that will likely be due to cover court and administrative fees.

According to the settlement details, Cigna is defined as “lax” and didn’t take the proper steps to determine if a person should receive disability benefits or not. While Cigna will be out millions, the company is also required to revise policies and the wording so that this kind of oversight will be more easily avoided in the future. Specifically, verbiage will be revised to included clearer definitions of state and federal laws, how Cigna works with social security benefits, medical resources, medical evidence and certification.

What About the Other Victims?

Unum and other companies within the family are notorious for denying claims without cause, stopping payments via cloudy language, and generally making the entire process difficult. Whether or not this massive payout will prevent this kind of abuse in the future is yet to be seen. However, with more publicity and victims banding together, it sets a great foundation for future policyholders. This particular settlement only addresses some victims in five states, yet Unum is offered in many more states.

Unfortunately, there are likely many Unum victims who are unaware that they’re not being treated fairly or don’t know where to turn. Unum class action lawsuits help speed up the process, give policyholders the support they need and can make a settlement more efficient. Most policyholders simply want what they’re due: Payouts for the policy they’ve paid into. Sadly, they have to fight for these insurance payments during a very difficult time in their life.

Unum’s Alleged Strategy

Every person’s experience is unique, but a few complaints include not being able to speak to someone about an issue, mysteriously having payments stop or denied and facing vague language in policies. The nuances of disability and life insurance are many, but Unum has a reputation for making things as difficult for some policyholders as possible. When a person is disabled — temporarily or permanently — they’re often not up for the challenge of fighting a big corporation.

Most people also don’t give their disability insurance much thought until it’s needed. This is a mistake, and not one that should automatically become the burden of the policyholder. Many Unum customers have never dealt with the company prior to making an initial claim. Trying to navigate the murky Unum waters is challenging at best.

Did You Have a Unum Claim Denial?

If Unum has denied your claim or your payments have stopped for no reason, you might have a Unum legal claim. You’ve paid into the policy and paid your premiums on time. You deserve the insurance you purchased.

Find out more right now by visiting the Unum/UnumProvident Disability Insurance Claim Denial Class Action Lawsuit Investigation. After you submit your information, an attorney will contact you if you have a claim to discuss your free Unum claim review.