Unum is no stranger to claim denial lawsuits alleging bad faith. In the face of a staggering number of Unum insurance claim denial lawsuits, Unum is facing another insurance lawsuit claiming a legitimate disability insurance claim was rejected.

Unum is the world leader in selling disability insurance. The way disability insurance works is that policyholders pay into the insurance policy. If the policyholder is unable to work, the policy is supposed to kick in and pay a portion of their pre-injury income. There are typically levels and lengths of time for varying degrees of injury.

But some Unum disability benefits lawsuits, and even a “60 Minutes” investigation, have alleged that Unum has wrongfully denied legitimate insurance claims in order to preserve its financial bottom line.

In a recent bad faith insurance denial lawsuit, plaintiff Dan Ayalon alleges he had a policy with Unum that insured him for 60 percent of his pre-injury income in the event of disability. In December 2010, Ayalon was reportedly diagnosed with multiple myeloma, a blood cancer related to leukemia. This type of cancer can cause debilitating fatigue and depression. From February to April 2011, Ayalon gradually reduced his working hours until he could no longer work, and applied for short-term disability insurance. According to his Unum lawsuit, Ayalon had to frequently nap and could not drive long distances since he could pass out from his fatigue.

Ayalon’s disability insurance claim denial lawsuit states that he was examined in August 2011, by two separate medical panels. These panels ruled that Ayalon was disabled per the Social Security Administration’s definitions. Based on this, Ayalon applied for Unum disability insurance benefits. In December 2013, Unum reportedly denied his long-term disability benefits on the grounds that he was not fully disabled per the definitions of the plan. Unum argued that several trips the defendant took during the time period proved that he was not actually disabled.

Disability insurance is regulated by a federal law called the Employee Retirement Income Security Act, or ERISA. Under ERISA, insurance policyholders can file insurance lawsuits against a disability insurance provider if they believe the insurance provider has acted in bad faith. Under ERISA, the policyholder must exhaust the insurance company’s internal review process before seeking legal action. Ayalon’s disability insurance lawsuit alleges that he has met these requirements.

The Unum Disability Insurance Denial Lawsuit is Dan Avalon v. The Unum Group, et al., Case No. 2:14-cv-03819-FSH-JBC, in the U.S. District Court for the District of New Jersey.