Unum Life Insurance Group finds itself as one of the defendants in a recent disability insurance lawsuit involving claims of fraud.

Unum Group, The Paul Revere Life Insurance Company and New York Life Insurance Company are all named as defendants in this recent case originally out of the Superior Court of the State of California, for the County of San Diego.

Most recently, the defendants called for a removal of civil action citing diversity of citizenship.

In essence, because neither Unum, Paul Revere nor New York Life operate out of California, the defendants are calling for the trial to be removed from San Diego County Superior Court and tried in United States District Court.

Disability Insurance Lawsuit filed by San Diego Man

In the disability insurance lawsuit, Plaintiff Marvin H. of San Diego raises many claims.

These include breach of contract and breach of the implied covenant of good faith and fair dealing, as well as prayers for relief including contractual, consequential damages, emotional and mental distress damages, punitive damages, attorneys’ fees, pre-judgment interest, and costs.

Marvin’s disability insurance lawsuit states that he was insured under two individual disability income policies issued by New York Life but administered by Paul Revere.

Allegedly, the defendants insured Marvin and were obligated to pay him a total of $2,150 in monthly benefits for 24 months for his disability. His disabilities include cardiac conditions and a disability involving his right knee.

Marvin claims that the defendants, without him asking them to do so, retroactively approved a previous disability claim he had made for depression dating back to November 2007.

This approval denied him the entitlement to a new and second 24-month period of disability.

Marvin claims that he has complied with obligations but that the defendants have not held up their end of the bargain. They have refused to pay his recent claim for disability benefits.

For this disability insurance lawsuit, Marvin seeks the recovery of 24 months of disability benefits. He is also asking for general and special damages, including emotional and mental distress, punitive damages and attorney’s fees.

Marvin claims that the defendants breached the Good Faith and Fair Dealing Covenant, or “bad faith.” This means that policyholders whose claims have been improperly or unreasonably denied or delayed may be eligible to file a complaint against the insurance company.

Other Unum Disability Insurance Lawsuits

This isn’t the only disability insurance lawsuit Unum Group has found itself up against recently.

In March 2016, a settlement worth $46 million was granted preliminary approval following a class action lawsuit against Unum alleging Unum improperly calculated long-term care benefits.

The class action lawsuit cited bad faith insurance on the part of Unum with regard to long-term disability insurance and denial of legitimate claims.

Unum and Bad Faith Insurance Practices

Many Americans consistently have money deducted from their paychecks to pay for disability insurance. In the event they become unable to work, disability insurance is there to help.

Unum is the largest disability insurance company in the U.S. and has been in business for 165 years. However, Unum has been frequently accused of denying legitimate disability claims from customers, including Marvin.

Unum policyholders claim that the disability company changes policies once claims are filed, improperly investigates claims, misreads medical records and refuses to acknowledge the disability.

In 2005 the Department of Labor in 2005 mandated that Unum resolve its bad faith insurance practices but many policyholders still report bad faith insurance practices from Unum.

This Unum Disability Insurance Lawsuit is Case No. 3:16-cv-1411-BEN-KSC in U.S. District Court, Southern District of California.