Who
is Unum Provident?
Unum Provident is the nation's largest disability insurance company,
with the next competitor not even coming close. Unum Provident
has been receiving an increasing amount of bad press and has been
the subject of thousands
of lawsuits over the last five years for denying
claims based on bad
faith.
Why are bad faith lawsuits
naming Unum Provident?
Over the last five years there have been nearly 3,000 lawsuits
filed against Unum Provident for denied
or terminated claims. Early November 2002, a class action
against Unum Provident was filed in a Manhattan federal court
charging, "Unum Provident has illegally victimized, and continues
to victimize, many thousands of disabled Americans." The
Unum Provident class action seeks monetary relief, in addition
to requesting the court order the insurance company to reevaluate
all the claims that have been denied in recent years.
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Why has Unum Provident's success
been controversial?
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.
Unum Provident continues to maintain they have
never used set targets to determine claims.
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What is bad faith?
Bad faith
insurance is any insurance claim that is unrightfully denied by
the Insurer. Unum Providence has been accused of denying claims
based on financial targets made every month, denying or terminating
legitimate claims.
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Have any bad faith lawsuits
against Unum Provident won?
Most recently, in November 2002 a San Francisco federal court
upheld a $7.5 million judgment against Unum Provident, finding
the company used bad
faith to deny
claims after pressuring medical examiners and destroying documents
to do so.
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When should I contact a bad
faith lawyer?
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.
To prove an instance of bad faith an individual
must show that the insurer failed to honor the contract and did
not pay what was rightfully due. Dealing with a powerful and wealthy
insurance company can be frustrating and confusing, which is why
the majority of denied
claims are not pursued. It is always advised to speak with
an attorney specializing in the sector of law you may be dealing
with to ensure you fully understand your legal rights and options.
If you
feel you may have been the victim of a bad faith insurance claim
denial it is important to contact a bad faith lawyer.
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What are some examples of
bad faith that a disability insurance company may use?
Some instances of bad
faith may involve a disability insurance company failing to
investigate a claim, delaying claim investigations for no apparent
reason, failing to provide payment on a claim covered, misrepresenting
the meaning of the language of a contract.
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What type of recovery will
a bad faith lawsuit provide?
By contacting a bad faith attorney the insured can better understand
if their denied
claim may have been bad
faith. If the insurance company fails to provide an adequate
settlement, or any settlement, your attorney can assist you in
pursing further legal action. If proving that the denied claim
was bad faith the insured is eligible to recover the benefits
never received for the claim, in addition to any additional damages
or losses as a direct result of the denied claim.
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