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Unum Lawsuit Alleges Bad Faith Insurance Practices
By Robert J. Boumis
According to the Unum lawsuit, Avery became disabled in 2010 and Unum initially paid out on Avery’s long-term disability (LTD) insurance policy — a policy designed to provide income should the policyholder develop a permanent disability that prevents them from working.
However, according to the lawsuit, Unum stopped paying out and denied the LTD claim starting in April of 2012.
The Unum lawsuit alleges that these actions constituted bad faith. In the context of insurance litigation, bad faith (sometimes referred to by the Latin term mala fides) means that the insurer deliberately failed to live up to the financial responsibilities of the insurance policy. Some legal scholars equate bad faith with fraud, but some posit that several nuanced differences exist between the two concepts. At the core however, the term implies that actions were taken maliciously – or at the very least with apathy towards the wronged party – to cause harm while benefiting the actor.
The Unum bad faith insurance lawsuit seeks several different types of compensation. This includes the reinstatement of long-term disability benefits, as well as back-owed benefits from the time of the denial. The Unum lawsuit also seeks money for the hardship and legal fees amassed while working towards getting those benefits reinstated.
The plaintiff is also seeking punitive damages. Punitive damages are damages sought above and beyond the monies designed to repair legal harm. Instead, punitive damages are designed to punish offenders and discourage further misconduct. These types of damages are not an option in every type of lawsuit, but bad faith insurance lawsuits do permit punitive damages under certain legal circumstances. Insurance companies have lobbied to have caps placed on punitive damages, but court ruling have since established that such caps are unconstitutional.
Avery’s case joins other that have alleged similar conduct by Unum. The company has faced hundreds of lawsuits, alleging that LTD policies were wrongly denied. Unum has control of a larger share of the long-term disability insurance policy market than any other country, and has made billions in revenue.
The case is formally titled Amy Avery v. Unum Life Insurance Company of America, Case No. 8:13-cv-02462-JMC, Court of Common Pleas, State of South Carolina, County of Anderson.
If you find yourself with a legitimate long-term disability insurance claim that was denied, it’s perfectly normal to feel overwhelmed. Huge companies like Unum command vast resources, including billions of dollars. But you need to remember that whatever your situation, the legal system is designed to protect everyone’s rights, and there are important steps that you can take to regain a measure of control over your situation. You can start by visiting the Unum/UnumProvident Disability Insurance Claim Denial Class Action Lawsuit Investigation and obtaining a free review of your case.
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