Bad faith is a legal term that means a party to a contract is attempting to avoid their obligations. In the case of insurance lawsuits, the term can refer to an insurance company attempting to avoid paying out on legitimate insurance claims. Unum, a major insurer, has faced many insurance denial lawsuits alleging that the company has acted in bad faith in cases involving disability insurance.

Disability insurance is typically divided into long-term and short-term policies. It is a type of insurance intended to provide for individuals if a disabling conditions prevents them from working. However, sometimes insurance companies like Unum, formerly known as Unum Provident, may disagree with the assessment that a person is disabled and entitled to payment. This could be interpreted as an act of bad faith depending on the circumstances.

Various Unum lawsuits have alleged that Unum failed to live up to its disability insurance policies. Plaintiffs have alleged that Unum employs a variety of tactics to deny legitimate insurance claims in bad faith. Some Unum lawsuits allege that the insurer demands an unreasonable amount of documentation to “prove” a disability. Other disability insurance lawsuits have alleged that Unum uses an unreasonable definition of “disabled” to deny claims. Still others allege that in-house physicians on Unum’s payroll are directed to reinterpret the policyholder’s physicians’ recommendations and interpretations of the policyholder’s condition.

A 2002 investigation by 60 Minutes made similar allegations. The 60 Minutes investigation found a former Unum-employed physician who claims to have been fired after refusing to override physicians’ determinations that policyholders were disabled. Along similar lines, the investigation found that Unum insurance agents were encouraged to compete for the “Hungry Vulture Award,” which was given to the employee who denied the most insurance claims.

Individuals facing bad faith insurance claims may seek legal action to correct the situation. With the help of a trained lawyer, individuals may successfully file a Unum lawsuit to get their insurance policy honored. However, according to various federal laws, the policyholder must first exhaust any internal appeals process with Unum before seeking civil action. An insurance denial lawyer can still help, however, even before this point in the process. It is advisable to carefully navigate the appeals process, document all interactions with Unum, and keep a clear head. An insurance lawyer can assist policyholders throughout this process, and with any civil case that arises. Insurance denial lawsuits against insurance companies typically seek the disbursement of the insurance policy, court costs, and interest, when allowed by law.