Bad Faith Insurance
Claims
Bad Faith Insurance Claims
When an insurance company has been found guilty of bad faith it is a complete failure to recognize an individual's rights. Although not every claim denial means bad faith insurance practices were used, it is advised to consult with an attorney specializing in bad faith claims if you suspect your insurer has acted in bad faith. An insurance plan requires an Insurer acts in good faith towards the policyholder. If you would like more information on bad faith lawsuits and Unum Provident, please contact us to confer with a bad faith lawyer.
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Unum Provident Lawsuits
The largest disability insurer
in the nation, Unum Provident is under investigation in Tennessee
and Georgia in response to complaints made against the company.
There have been numerous lawsuits filed against Unum Provident
by insurance holders claiming the insurance powerhouse
terminates or denies legitimate claims. The Unum Provident
policy to terminate legitimate claims for financial gain are well-known
company practices, supported and highly pushed upon all employees
to meet set targets according to former and current employees
that have come forward to the media regarding Unum
Provident's bad faith practices.
Bad Faith News
$8 million UnumProvident settlement allows California policyholders to have claims reevaluated
October 10, 2005
The California Department of Insurance issued an $8 million fine against the nation’s largest disability insurer, UnumProvident Corp., as part of a landmark settlement reached October 2, 2005. The biggest fine in the agency’s history, state regulators said Unum misinterpreted job classifications, improperly overruled doctors’ opinions and knowingly used incorrect insurance definitions to avoid paying benefits.
Read Full Article.. |
Unum Provident Controversy
According to Unum Provident financial reports in 1993, the insurance
company was losing millions of dollars until new management totally
turned the company around. Shortly after, Unum Provident reported
gains of millions of dollars. The company attributed this financial
turnaround to restructuring and sound business decisions, however
some former employees attribute the financial success to different
reasons.
An October 2002 Dateline investigation included
a former Unum Provident employee, one of just two staff physicians
employed at the time new management took over at the company in
1993. Taken in a deposition, former employee Dr. William Feist
described how Unum Provident started holding meetings called "roundtables"
where claims were cut from individuals costing the company, especially
from those with subjective illnesses, such as mental illness,
chronic pain, Parkinson's that had no ability to show up in actual
x-rays or MRI's.
A Dateline investigation spoke with ten Unum
Provident employees ranging from high offices of vice presidents
to claim representatives that all reported on Unum Provident's
denied claims. A 1995 Unum Provident memo outlined the company's
goal of terminating $132 million in claims. A 2001 Unum Provident
email shows a company wide goal of closing 18 or more claims in
one week in order to meet projections made.
Still, Unum Provident continues to deny reports
that the company sets targets for closing valid claims.
Unum Provident Employees Pressured to Terminate
Claims
According to a former claims handler for the Unum Provident headquarters
for five years, every month Unum Provident would look to shut
down $7-14 million claims that was based on a monthly target.
Unum Provident continues to deny these reports and says claim
handlers had no financial incentives to
terminate claims of disables policyholders.
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UNUM Provident Claim Denial Policy «
Tennessee and Georgia Insurance Official
Reviewing Unum Provident Complaints
NBC's Dateline and CBS's 60 Minutes news shows both reported on
Unum Provident and allegations that the nation's largest disability
insurance company uses bad faith to deny legitimate claims. Following
the news shows agency officials in Tennessee and Georgia said
they were reviewing complaints against the company, but investigations
are confidential and will not be made available until the end
of December 2002. If you would like more information on bad faith
lawsuits and Unum Provident, please contact us to confer with
a bad faith lawyer.
