Filing an Unum Lawsuit May Be Only Way to Recover Benefits

By Sarah Mirando | November 13, 2012

Category: Labor & Employment

By Andrea Gressman

If you have been denied by Unum for disability insurance benefits, filing a Unum lawsuit is one of the best and only options that you have to use against Unum. Unum is known for denying legitimate claims filed by their policyholders. When you file a Unum lawsuit, you may be able to receive compensation for your losses. Despite being one of the most well-known names in the industry, it does not mean that their decisions and practices are always legitimate. It is important that you protect your rights.

Unum Lawsuits of the Past

Unum has been under a great deal of criticism, which started in 2002 when the media started reporting the shady Unum practices of denying their policy holders legitimate insurance claims. It was revealed through the media coverage that Unum had set quotas that meant a certain number of claims must be denied in order to insure Unum’s profit margin stay intact. It was also revealed that Unum also offered incentives to their employees to deny these claims. They were distastefully referred to a “Vulture Awards.” The media coverage went on to uncover Unum’s gross misconduct. As a result, Unum became the subject of a number of Unum lawsuits filed by the federal government, private Unum lawsuit attorneys, and state regulators – all of which represented the many Americans who had become Unum’s victims.

2004 Settlement of Unum Lawsuit Dictates Strict Terms for the Company

There were numerous state regulators that came together to fight on behalf of the consumers right against Unum and their bad faith insurance practices. The Unum lawsuit that was filed in 2004 had the following results:

* It mandated that Unum provide prospective policyholders additional information regarding the commissions Unum pays to is brokers. This was due to the result of several Unum lawsuits finding the Unum employees guilty of broker fraud.
* It mandated Unum to enhance their claims handling procedures. They were to provide both a board and corporate governance that would oversee the new procedures set in place.
* Unum was to pay in excess of $15 million in fines to jurisdictions and states joined in the agreement
* Unum had to pay a $1 million in restitution to the Unum policy holders that previously had their insurance claims denied in an unfair manner
* Unum had to revisit 215,000 insurance claims that had been previously closed or denied.

Unum’s Broker Fraud Lawsuit in 2006

In the later part of 2006, another Unum lawsuit of a high-profile nature found that the regional Vice President JM Foley was guilty of federal fraud charges. They found that he was fraudulently selling group insurance in blocks to corporations, which was illegal to do and violated federal law. This practice was proven to have taken place from 1998 to 2004.

Current Unum Lawsuits

Despite a long record of Unum lawsuits, it does not seem that these terrible Unum practices are going to slow down anytime soon. There have literally been thousands of Americans affected by the bogus denials issued by Unum and, as a result, filing a Unum lawsuit is typically the only way to recoup any of the damages Unum’s claim denials generate. If you have been the victim to Unum’s unfair practices, consult a Unum lawsuit attorney right away. Visit the Unum/UnumProvident Disability Insurance Claim Denial Class Action Lawsuit Investigation page to speak with a Unum lawsuit lawyer free of charge.