Karina Basso  |  July 2, 2014

Category: Consumer News

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Unum disabiliy insurance problemsAn Unum claim denial lawsuit was filed against Unum Group Insurance Co. by a Tennessee woman who accuses the company of wrongful denial of long term disability benefits. Unum Group continues to come under fire in individual and class action insurance claim denial lawsuits for allegedly denying disability claims to policy holders who have paid all premiums and met all disability requirements.

Plaintiff Mary E. Randolph was reportedly a full-time employee at Corrections Corporations of America and under its contracted policy was eligible for Unum’s disability insurance plans. When she became disabled on April 2, 2003, Unum granted her application for short-term disability, which was then extended into a two-year long-term disability plan. This plan lasted until Nov. 5, 2005, at which time Randolph applied for and received Social Security disability benefits, according to the Unum claim denial lawsuit.

When Randolph attempted to apply for continuing long-term disability benefits through Unum Group, she reportedly received a letter from the insurance company. The Unum lawsuit states, “Unum denied Plaintiff’s request for continuing long-term disability benefits under the Plan, despite Plaintiff’s entitlement to such benefits.” Randolph immediately reapplied and was yet again denied. According to the claim denial lawsuit, Unum “failed to properly consider the medical evidence submitted in support of Plaintiff’s claim and, thereby, erroneously concluded the mental and nervous condition limitation of the Plan applied.”

Randolph’s Unum lawsuit is seeking that her disability plan with Unum be reinstated and attorney’s fees and other damages awarded for her time and trouble.

The Unum Lawsuit is Mary E. Randolph v. UNUM Group Corporation, et al., Case No. 2:14-cv-02395, in the U.S. District Court for the Western District of Tennessee.

Background on Unum Group

Unum Group, formerly known in the United States as Union Mutual Life, is a life insurance company that was established in 1848. There are reports that Unum has engaged in cash flow underwriting — that is the practice of selling as many insurance policies as possible without assessment of risk — since the 1980s. When insurance companies use the practice of cash flow underwriting, they are able to make massive profits on the initial premiums paid by the new policy holders and usually invest this profit in the marketplace almost immediately after they are paid.

Because of this cash-flow underwriting, Unum gained control of over a large portion of the long-term disability insurance market. By 1993, however, the projected interest rates for life insurance plans plummeted and Unum Group lost profits on its policies, most noticeably in its long-term disability contracts. In order to retain profits, Unum has allegedly adopted the practice of intentionally rejecting disability claims even when they are valid.

The company has been the subject of government investigations and class action lawsuits.

In general, Unum claim denial lawsuits are filed individually by each plaintiff and are not class actions.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.

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