Unum Sued for Wrongful Termination of Disability Benefits

James Maxey is suing the Unum Company over allegedly denying a rightful insurance claim. Unum has previously received censure over their alleged practices in the form of an investigation by government regulators, the television newsmagazine “60 Minutes,” and other Unum fraud lawsuits.

Maxey alleges in the Unum lawsuit, filed July 10, 2013, that he became disabled in May of 2009. At the time, Maxey was an employee of Starwood Hotels and had a disability insurance plan through Unum. This long-term disability insurance was set up to provide Maxey with a safety net should he become disabled and unable to work. However, in May of 2012, Unum terminated Maxey’s benefits, contenting that he did not qualify for long-term disability insurance.

The Unum insurance policy differentiates between short-term and long-term disability insurance by paying out for someone unable to work in their field for up to two years, but long-term disability insurance would only kick in if the subject was unable to seek any gainful employment, which Maxey alleges he cannot.

According the Unum lawsuit, Maxey attempted to pursue remedy through the terms of the contract with Unum. He appealed the decision several times through Unum channels, in November and December of 2012. However, Unum has not changed its decision, and Maxey has not received benefits since the initial termination of benefits of May 2012.

Maxey’s lawsuit centers on the allegation that Unum’s action violate the Employee Retirement Income Security Act of 1974 or ERISA. The Unum ERISA lawsuit alleges that Unum failed to pay benefits to Maxey, despite the fact that he was eligible for benefits under the terms of the plan. The Unum lawsuit also says that Unum failed to provide enough information about why they determined him not to be disabled, which would have allegedly allowed Maxey to better work with Unum to correct this.

Additionally, the Unum ERISA lawsuit alleges that Unum failed to properly investigate Maxey’s claim of disability, and illegally terminated his benefits. According to the complaint, Maxey has exhausted the means to address the situation within the framework of his policy with Unum as required by ERISA.

The lawsuit seeks a number of types of relief or compensation. First, it seeks the reinstatement of Maxey’s insurance benefits per the long-term disability plan, with interest provide for by ERISA. It also seeks legal costs like attorney fees.

The Unum lawsuit is James Maxey v. Unum Life Insurance Company of America, Case No. 13-cv-61488-WPD, U.S. District Court, Southern District of Florida.

Get the Benefits You’re Owed

If you’ve found yourself in the same situation as Mr. Maxey, it’s normal to feel overwhelmed, and not sure what to do next. Unum is a giant company, with millions at the disposal, and it may seem their decision is final. But you need to remember that you have rights and there are steps that you can take to regain control of your situation.