Legal experts state that insurance claim denials from Unum remain a litigation concern because the companies continually deny claims based on false evidence or no basis at all.  When insurance companies do this, it is called ‘bad faith,’ and it increases the company’s profits by retaining the policyholder’s money.

While the courts recognize the special circumstances surrounding insurance coverage, they also recognize the temptation for insurance companies to act in bad faith, which typically happens when the company is trying to recover from a significant financial loss. Unless if the company proves that there was valid reason to turn down the insurance claim, then they are found in the wrong because of bad faith.

For policyholders, it is important to be informed and aware of all legal proceedings surrounding denied Unum insurance claims. It is also important to watch out for signs that the insurer had acted in bad faith, to add to the evidence that you had been wronged during the claim process. Policyholders should always write down the specific facts about their insurance claim, as well as the terms of indemnity of their policy.

Overview of Claim Denial Legal Proceedings

The following questions are for policyholders to ask themselves if they suspect that they have been a victim of bad faith insurance. Future policyholders should take this list into account as they choose which insurance company to sign up for. Questions indicating bad faith insurance include, but are not limited to:

• Did the company conduct a slipshod or biased investigation of the claim?
• Did the company take an unreasonably long time to pay?
• Did the company offer you less than the sum stated in the policy?
• Did the company deny payment for a condition that is covered?
• Did the insurance agent infer coverage that is negated elsewhere in the policy?

If the policyholder confirms any of these questions, there is a significant possibility that he or she may have been a victim of a bad faith insurance denial from Unum.  When this occurs, the policyholder should file for appeal, and then consider further legal action if the appeal is turned down However, it is important to note that there are legitimate reasons for companies to deny insurance claims.  These reasons include, but are not limited to:

• Seeking compensation for situations not covered by the policy
• Making fraudulent claims
• Default, or nonpayment of premiums, by the insured

If these questions do not apply to the policyholder, then they are encouraged to proceed with legal action against Unum.  Joining a Unum class action lawsuit is one way to do this. The Unum class action lawsuit will depend on how well the bad faith act can be proven, and that the action had been completely for the company’s gain, leaving no benefit for the policyholder.

The most vital evidence is illustrating to the court how the company processed the claim, so keeping record of each relevant communication is vital for the policyholder.

The legal perception of what is considered a timely and appropriate investigation on the insurance company’s part could change over arguments and claims made in court.  Policyholders are encouraged to work with their attorneys to compile details surrounding their claims, as well as a timeline and the steps the policyholder took in the filing process.

If there are other policyholders with the same insurance company that also have similar “bad faith” complaints, a “bad faith” class action lawsuit may be a realistic option.