Insurance Companies

When your Unum claim for disability benefits is valid and payable, how can Unum deny it?

That’s the question we hear all too often. After all, Unum is the largest disability insurance provider in the country, collecting billions of dollars worth of premiums each year. Unum is also a fiduciary, meaning they should act in your best interest when evaluating and administering your disability claim.

Unum Claim Denial Practices

If you are involved in a Unum claim dispute, you’ve become an unwitting part of their long history of denying claims through unfair practices and bad faith. The key is to not give up. With skilled legal representation, you can win the benefits you deserve.

Unum, the largest disability insurance company in the nation, is no stranger to lawsuits and class actions.

In addition to facing thousands of individual lawsuits filed by policyholders who allege their disability claims were wrongly denied, the company has been on the receiving end of class action lawsuits for insurance bad faith practices since 2002.

Working on the basis of “power in numbers,” a class action is an effective way for ordinary people with equivalent legal complaints against the same offender to take on a powerful corporation.

Under a Unum class action lawsuit, a group (class) of people claiming a common grievance collectively brings a claim (action) against Unum. Disability insurance lawyers act on behalf of the group, and the judgment of the lawsuit is for all members of the group.

Yet another Unum class action lawsuit has been resolved. In 2008, Unum Group agreed to a federal class action settlement to the tune of $40 million. The lawsuit alleged that Unum (as UnumProvident) misled investors by inflating its stock share price by producing inaccurate accounting and financial statements, as well as resorting to improper handling of disability claims.

Unum accepted the settlement without admitting liability. The class action lawsuit involved thousands of people who bought UnumProvident securities from March 2000 to April 2003. Unum has created a $40 million fund to be distributed among these investors. Unum still denies the allegation.

Unum’s handling of disability claims has been the focus of countless lawsuits. Among other disciplinary actions, Unum was the subject of an investigation by the Department of Labor that led to a court order fining Unum for $15 million for inappropriately denying claims. The company was then directed to reevaluate over 200,000 claims they had previously denied.