An Unum lawsuit has been filed in a Missouri federal court, alleging Unum Life Insurance Company of America practices bad faith insurance by wrongfully denying qualifying policy holders their disability insurance benefits.

Plaintiff Christi O. filed this Unum disability insurance lawsuit in May, seeking to recover her allegedly unpaid disability insurance benefits due to her under her Unum insurance policy.

Christi claims she was entitled to benefits under her Unum insurance plan through a “group employment disability insurance contract through former employer and policy holder—North Kansas City, Missouri School District.”

According to her Unum lawsuit, Christi is seeking a payment from Unum for all of her unpaid disability benefits and damages for Unum’s alleged breach of insurance agreement, as well as attorney’s fees and costs, all together exceeding $75,000.

Background on the Unum Disability Insurance Lawsuit

Christi was an employee of the North Kansas City School District as a cafeteria worker until Dec. 28, 2011, at which time she became disabled.

According to her Unum bad faith insurance lawsuit, “she is not able to perform the essential duties of any occupation because of symptoms, physical limitations, cognitive limitations, and medication side effects related to and as a consequence of her diagnosed medical conditions.”

Christi remains disabled and is not able to work any other job as a full time employee, according to her Unum lawsuit.

Soon after becoming disabled, Christi applied for Unum disability benefits, for which she paid premiums for starting in November 2006 through the day she became disabled in 2011, all of which was collected and retained by Unum according to her disability insurance claim denial lawsuit.

Christi claims that after filing a claim through Unum to receive disability insurance after paying premiums for five years she was denied disability benefits.

“Unum denied [Christi] was covered under the policy of insurance. No material facts were misrepresented to Unum regarding the employment status of [Christi], including her job title and work schedule. [Christi] has exhausted all administrative remedies. Unum has materially breached the insurance agreement,” the Unum disability insurance lawsuit says.

According to her Unum lawsuit, the plaintiff claims Unum failed to provide her a full and fair review of her disability insurance claim and denied her claim with allegedly “no substantial evidence.”

Christi further alleges that by denying her long-term disability benefits claim since March 2012, Unum owes her $186,661.98 in unpaid benefits because of the company’s alleged breach of contract.

The Unum Disability Insurance Claim Denial Lawsuit is Case No. 4:15-cv-00352-ODS, in the U.S. District Court for the Western District of Missouri.

Background on Unum Bad Faith Insurance Practices

According to allegations made by Unum life insurance policy holders, Unum has allegedly engaged in cash flow underwriting practices for the better part of the last two decades.

Cash flow underwriting is a scheme that hinges on selling many life insurance policies without any regard as to the future risks for each Unum policy holder. Numerous Unum lawsuits allege the insurance company made profits by taking the initial premiums and then investing them elsewhere.

However, when the value of life insurance policies began to decrease, Unum allegedly began to deny qualifying policy holders their long term disability benefits in order to retain some profits from existing and future disability insurance claims.

Bad faith insurance practices, like those allegedly practiced by Unum, intentionally deny qualifying policy holders their long term disability benefits. Even when policy holders like Christi submit all appropriate paperwork and provide evidence as to their inability to work because of their disabilities, Unum allegedly wrongfully denies these individuals their disability insurance benefits.