Unum Accused of Denying Legitimate Disability Claims

By Robert J. Boumis

Unum is the largest disability insurance company in the world. Based in Chattanooga, Tennessee, this company handles roughly 40 percent of the disability claims in the United States. However, Unum has been accused of systemically denying valid claims against the people who trusted them for disability insurance.

Unum is a Major Player in the Insurance Market

Unum is a powerhouse in the insurance business and is a Fortune 500 company. It was formed by the merger of Unum of Portland, Maine and Provident Life and Accident Insurance Company of Chattanooga, Tennessee. When they first merged in 1998, they went by UnumProvident Corporation. In 2007, the company shortened its name to Unum as part of a re-branding effort. This insurance company provides a variety of insurance benefits, including life insurance, employee benefits, and disability insurance. Over 17 million Americans have disability insurance through Unum.

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Federal Disability Insurance Claims Lead to Judges' Suit

By John Curran

There is a backlog of Social Security Disability Insurance claims that stretches back for months or, on average, more than one year, leading to judges acting as government claim denial specialists. However, the political football of ensuring that deserving applicants get benefits while reducing fraud has led to a union lawsuit on behalf of administrative law judges.

They represent the second line of opportunity for people to get disability insurance benefits, after state claim denial specialists reject the majority of initial claims. The administrative law judges, who may also handle the appeals of Unum disability insurance beneficiaries, have complained that they cannot adequately review claims. Last year, Judge Randall Frye told Congress that they can only spend two and a half hours per case, including 30-60 minutes for the hearing itself.

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UnumProvident Claim Denials Put in Media Spotlight

By Courtney Coren

Unum is an insurance company that provides employee benefits to 17 million Americans -- including disability, life, accident and critical illness insurance -- as coverage during times of unexpected illness or injury that may require a prolonged absence from work. It’s the type of insurance that is there to provide peace of mind when the unexpected happens.

In 1999, Unum merged with Provident insurance company, and almost immediately, several lawsuits began to come out against the large insurance company. UnumProvident was then sued by several customers claiming they were unjustly denied disability payments that they should have received in 2002.

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Unum Plaintiff Awarded Attorneys' Fees in Wrongful Claim Denial Lawsuit

By Anne Bucher

Tanya Mondolo had been diagnosed with leukemia and received chemotherapy to treat the disease. She developed avascular necrosis, a type of bone death, from the chemotherapy treatments. She also suffers from fibromyalgia. Due to these conditions, she cannot sit for long periods of time and she has trouble walking. Despite her serious health problems, Unum denied her disability payments.

In 2011, Tanya Mondolo filed a lawsuit against Unum under the Employee Retirement Income Security Act (ERISA). In January 2013, the U.S. District Court for the Central District of California ruled in her favor, finding that Unum had improperly denied her insurance benefits. The court found that the insurance company did not adequately investigate her insurance claim. The judge ordered Unum to reinstate her benefits with interest. At that time, the judge found that Mondolo’s Unum lawyers could file a motion to recover attorneys’ fees.

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Unum Lawsuit Ruled in Favor of Plaintiff, Twice

By Christina Drury

Unum offers disability benefits to those who need them, typically backing employer’s disability plans. The concept of the plan is good; however, many people have experienced difficulties getting their Unum disability insurance claims approved after becoming injured.

Employer Healthcare Deficits Lead to Disability Insurance Problems

By John Curran

In spite of the fact that the majority of employers will face penalties in 2014 for not providing health insurance options for their workers, many are still leaving little in the way of benefits today. As efforts in Kansas indicate, this is causing problems for those who also provide UnumProvident disability insurance benefits.

For many workers, trying to stay on the job through illness or injury is preferable to trying to get medical help because they may have to pay large sums out of their own pockets. Continuing to work when one is at a diminished capacity can lead workers to become unable to stay in the workforce. That increases the work for disability insurance claim denial specialists, but also leads to problems for these employers.

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