Unum Class Action lawsuit – Definition and Settlement

Posted on Tuesday, October 2, 2012 by Unknown

UNUM class action lawsuit settlement
Unum, early known as First Unum and Unum Provident, is a Tennessee based insurance company formed after the merging of two competing insurance companies namely Unum of Portland, Maine, and Provident Life Chattanooga. It mostly handles employee benefits like life insurance, illness insurance, disability insurance, and long-term care insurance. Unum has three divisions, Unum Us that is headquartered in Tennessee, Colonial Life that is headquartered in South Carolina, and Unum UK that is headquartered in Dorking. Unum is the largest disability insurance in the United States and worldwide. It is estimated that almost 40% of all disability insurance policies in the U.S. or 17 million Americans is handled by the company. Controversies also plague the company amid massive abuse of powers and denied disability claims. The company currently faces numerous lawsuits for illegal denial of legitimate disability claims.

Unum Provident Denied Disability Claims History and Controversy

Unum has been charged of systematically denied disability claims to some of its policy holders for the past 20 years. This issue was intensively publicized by media through CBS’s program 60 minutes. Plaintiff attorneys used the program to publicize the issue that the company has been unfair and had quotas for closing claims. Unum countered the allegations by noting that:

"only 2% of the policyholders who filed a claim with the company last year [2001] were found not to be disabled, an amount consistent with prior experience."

Several lawsuits have been filed against the company since then. According to some company employees that were interviewed by CBS program, 60 minutes, the company sets a disability claim denial each month and rewards claims fixers or adjusters who succeed to meet the goal. Former physicians of Unum were also interviewed and testified that they were ordered to review the claimants’ medical records and falsely state that they were not eligible and were not disabled regardless of their true condition.

Denied Disability Insurance Lawsuit

You may apply for a class action lawsuit against Unum if your claim is illegally denied or terminated. You can receive compensation for your losses and receive your insurance money if you win your case. It is highly suggested that you consult your attorney or lawyer to talk with your claims.

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