Woman Files Unum Disability Lawsuit After Benefits Stopped

A woman has filed an Unum disability lawsuit after the company allegedly stopped paying her previously approved claim.

Plaintiff Katie D. of Oregon says she was employed at a law firm that included a long term disability plan through Unum and a life insurance plan.

In December 2013, Katy says she began to suffer debilitating headaches and lost vision in her right eye. Allegedly unable to perform the essential functions of her job, Katie filed for long term disability benefits.

In April 2014, Unum accepted her claim for long term disability benefits and granted her a waiver of the premiums on her life insurance policy.

Disability Benefits Issues Begin

Katie alleges she began to receive payments in April 2014 that were retroactive to March 2014 in the sum of $1,620 per month. In August 2016, she says the amount of her disability benefits was reduced to $839 per month because she had started to receive Social Security disability (SSDI) payments.

In January 2017, Unum allegedly began withholding the $839 per month payments, saying they had overpaid Katie. She says Unum alleged the overpayment was due to Katie receiving retroactive disability benefits through Social Security in the amount of $15,424.50.

Since January 2017, Katie says she has received no disability benefits from Unum. Unum withheld $12,585 from her between January 2017 through April 2018, but the company says it is still trying to recover an overpayment of $10,638 from Katie.

According to the Unum disability lawsuit, Katie attempted to return to work in September 2017, but “in December 2017, her condition worsened considerably.” During her attempt, she allegedly was only able to work full time for three of the 11 two-week pay periods. Her last day of work was Feb. 9, 2018.

Unum purportedly told Katie in May 2018 that she was no longer eligible for long term disability benefits, effective August 14, 2018 because she had tried to return to work.

She allegedly attempted to have her benefits reinstated through Unum’s internal appeals process, but her appeals were denied. Upon these denials, Katie had no choice but to file a lawsuit, joining thousands of other Unum bad faith claims around the country.

According to the Social Security Administration, 5.6 percent of working Americans will suffer from a disability because of illness, injury or pregnancy on average every year, and most of the medical issues will not be related to an occupational injury.

Unum Disability Lawsuit Cites Key Clause

According to Katie’s disability lawsuit, Unum defines a “recurrent disability” as one that is related to a prior disability for which the covered party received a monthly disability benefit.

Unum’s policy allegedly states that a recurrent disability will be covered if the insured party returns to a regular job on a full-time basis for less than six months.

Katie “attempted to return to work in 2017, but was unable to perform the duties of that position.” As such, she allegedly never stopped being “disabled” as defined by Unum.  She is seeking long term disability from Unum from June 2018 through age 65, which is indicated as “not less than $312,142.”

According to Unum’s 2017 financial data, the company’s revenue for that year was more than $11.2 million.

The Unum Disability Lawsuit is Case No. 6:19-cv-00142-MK in the U.S. District Court for the District of Oregon, Eugene Division.