Lawsuits against Unum, the disability insurance giant, have been the topic of TV news coverage, a multi-state investigation, state insurance commissioners, and years of negative press.

Unfortunately, this is also a topic that has become all too common in many American households. Many policyholders claim they were unfairly denied disability benefits.

What Is Unum Insurance?

Unum Insurance is the leading disability insurance company in the United States. Unum, formerly known as UnumProvident Insurance, has several affiliated companies which also sell disability income polices. Among them are:

• Unum Life Insurance Company of America
• Paul Revere Life Insurance Company
• First Unum Life Insurance Company
• Provident Life and Accident Insurance Company
• Provident Life and Casualty Insurance Company
• Colonial Companies

Sadly, these companies have a history of unfairly delaying or denying disability insurance claims. Many people have complained about Unum Insurance, and Unum has re-opened disability claims that were unfairly closed. Unum has also paid settlements to states.

Many companies provide their workers with long-term disability benefits insurance through Unum, so workers who  believe they are covered may be in for an unpleasant surprise if they become disabled and unable to work.

In 2008, the American Association for Justice (AAJ) listed Unum Insurance as the second worst insurance company in America. Former Unum Insurance employees have reported that the company ordered them to deny legitimate claims in order to meet goals and save the company money.

Denied Disability Claims

Unfortunately for their policyholders, Unum Insurance has allegedly denied legitimate disability claims, leaving the claimants without the very benefits they thought would be available in their time of need.  Some claimants are denied from the initial application, while others receive benefit cessation letters – which means their benefits are being “cut-off” or terminated.

Long-term disability claimants are left to figure out how to pay for their food, shelter, and other monthly bills, and are often left wondering how they will support their families.

Many Unum Insurance policyholders have reported that Unum Insurance has illegally denied disability claims by:

• Changing policies once claims are filed (and without the authorization or knowledge of policy holders)
• Improperly investigating claims
• Misreading medical records
• Refusing to acknowledge claimants’ disability

Holding Unum Accountable for Bad Faith Insurance

Many plaintiffs who file Unum lawsuits have been successful in obtaining justice for Unum’s bad faith insurance practices.  On January 24, 2003, a California jury awarded a $31.7 million verdict against Unum Provident for wrongfully denying a disability benefits claim.

Unum denied a claim for a doctor who was diagnosed with Parkinson’s disease and could no longer perform eye surgeries Unum Provident was more concerned with profits than its customers, therefore denying the doctors disability insurance claim.

Another more recent example of prevailing justice against Unum Insurance involves a 2009 Kansas federal court ruling that Unum was “arbitrary and capricious to deny benefits based on a policy exclusion that the claimant’s fibromyalgia was a self-reported condition.”

The court agreed to vacate the record of its decision against Unum that, which found that the company had improperly discontinued the plaintiff’s long-term disability benefits in violation of the Employee Retirement Income Security Act (ERISA). Unum Insurance settled for an undisclosed amount.

Unum Lawsuits

Unum claim denial lawsuits are personal injury cases that seek compensation for individuals who have been victimized by Unum Insurance’s alleged bad faith insurance practices.

Unum Insurance has a history of denying legitimate disability claims. If you or a loved one have suffered a serious short term or long-term disability while insured by Unum Life Insurance Company and have been denied disability insurance benefits, you may have a claim against Unum Insurance.