Oregon Woman Files Insurance Benefit Denial Lawsuit against Aetna

An Oregon woman has filed a lawsuit against Aetna Life Insurance Company for allegedly denying the life insurance benefits that is owed from her deceased husband’s life insurance policy. 

Salem, Oregon, resident Deborah Carter’s husband, Timothy Carter, had a life insurance policy with Aetna. Mr. Carter used to be employed with Weyerhaeuser Co. when he signed up for group supplemental life insurance offered through his employer and named his wife as the beneficiary on the policy. The premiums for the Aetna insurance policy were deducted every month. 

In November 2009, Mr. Carter was diagnosed with stage four lung cancer, which is typically incurable. However, with the advances that have been made in cancer research, cancer patients are experiencing more successes and survival rates have increased. 

Mr. Carter began undergoing very aggressive treatment right away. According to the Aetna insurance benefit denial lawsuit, the “treatment was so rigorous that (Mr. Carter) became mentally and/or physically incapacitated.”

In February 2010, Aetna claims that it sent a letter to Mr. Carter saying that because he was no longer working and receiving a paycheck, he would need to change his insurance policy so that Aetna would bill him directly, since the insurance company could no longer withdraw money from his paycheck. 

Aetna said in the letter that Mr. Carter had until May 30, 2010 to decide to continue the policy in this fashion. However, it was allegedly stated “in bold text” that the change had to be made by that date “unless you were mentally or physically incapacitated from making an election.”

Aetna allegedly sent a separate letter in April 2010 to Mr. Carter saying that the life insurance policy could continue if he was “properly certified under the plan’s disability criteria,” but he had until Nov. 20, 2011 to do so.

Mr. Carter died on Aug. 23, 2010. At the time of his death, he had not elected to make any changes to his life insurance policy. Mrs. Carter notified Aetna of her husband’s death and asked that for the insurance money owed to her as the beneficiary of her late husband’s policy. To date, Aetna has allegedly refused to pay Mrs. Carter a dime. 

In her insurance benefit denial lawsuit, Mrs. Carter is charging Aetna with breaching the contract that the insurance company had with Mr. Carter to pay money to his beneficiary at the time of his death. She is asking Aetna to pay $164,800 including interest at 9 percent per annum since Aug. 23, 2010 until the judge make his ruling. As of Aug. 23, 2013 the total owed to Mrs. Carter was reportedly $209,296.

Mrs. Carter’s insurance benefit denial lawsuit was initially filed in the Circuit Court of the State of Oregon for Lane County on Aug. 22. Aetna filed a motion to have the lawsuit moved to Oregon federal court on Sept. 30. 

The Aetna Life insurance benefit lawsuit is Deborah A. Carter v. Aetna Life Insurance Company, et al., Case No. 6:13-cv-01734-TC, in the U.S. District Court for the District of Oregon, Eugene Division.

If you or someone you know had insurance benefits run out prior to when they should have, legal options are available. Learn more and get a free legal consultation regarding a claim’s eligibility at the Unum/UnumProvident Disability Insurance Claim Denial Class Action Lawsuit Investigation. Experienced legal professionals are available to determine if you have a case, so act now.