A consumer who allegedly had her disability benefits discontinued has filed a lawsuit against Unum, alleging that the discontinuation was a violation of the Employee Retirement Income Security Act.

Plaintiff Diane W. recently filed a lawsuit against Unum Life Insurance Company of America, alleging that she had her disability benefits discontinued abruptly by the insurance company after being approved for years. She alleges her benefits were discontinued in violation of the Employee Retirement Income Security Act (ERISA).

Diane says she was a Costco employee through August 2008, when adverse health conditions caused her to be unable to work. Through Costco, Diane was eligible for disability benefits through Unum. She says her claim for benefits was approved and continued without interruption for years.

“It is the opinion of her medical providers that [Diana] was unable to perform the material and substantial duties of her Own Occupation or Any Occupation on a full-time basis as defined in the Plan,” the Unum lawsuit reports.

In July 2011, Diane says she was informed that her disability benefits would be discontinued. She says she appealed this decision in a timely fashion and provided medical documentation to support her appeal. With her added evidence, Diane claims, Unum reversed their decision and found that Diane was, in fact, unable to perform her occupation. In September 2014, Diane’s doctor submitted a statement to Unum, stating that Diane’s limitations and disabilities were permanent and Unum agreed at that time.

Unum allegedly sent letters in November 2014, December 2014, and January 2015 offering Diane the chance to buyout her claim. However, as Unum’s offers represented only 67 percent of the value of her claim, Diane declined these offers.

In July 2016, Diane says she was once again informed that she was having her disability benefits discontinued. Diane appealed this decision twice, but was informed in July 2018 that the decision to discontinue her benefits was being upheld. Diane claims that Unum’s actions are in violation of her disability policy, ERISA, and other regulations.

“Defendant has violated the clear and unambiguous terms of the applicable Policy, ERISA, and applicable regulations in ignoring the facts of Plaintiff’s case as a whole, and in denying Plaintiff’s claims for ongoing long-term disability benefits,” Diane’s lawsuit alleges.

Unum is one of the largest disability insurance companies in the U.S., with the company handling nearly 40 percent of all disability insurance policies in the country. They provide coverage to almost 17 million Americans, but consumer reports suggest that the insurance company has told countless customers that they were having their disability benefits discontinued in violation of policy terms. The practice is reportedly supported by Unum corporate policies and has been going on since at least 1996 when the first plaintiff filed their lawsuit against the company.

These actions have lead to over 3,000 lawsuits being filed against Unum by the federal government, regulators, and policyholders. Many of these lawsuits have resulted in successful settlements benefiting policy holders with thousand or even million dollar awards after having their disability benefits discontinued.

The Unum lawsuit seeks a reversal of Unum’s decision, the sum of her past benefits, court costs, and attorneys’ fees.

The Unum Lawsuit is Case No. 0:18-cv-02286-DSD-DTS in the United States District Court for the District of Minnesota.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The bad faith insurance attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or Unum class action lawsuit is best for you. [In general, Unum bad faith lawsuits are filed individually by each plaintiff and are not class actions.] Hurry — statutes of limitations may apply.

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