The Unum Group: Disability Insurance Gone Bad

The Unum Group is one of America’s largest insurers in the disability market. However, bigger is not necessarily better. Unum has a long history of denying and delaying valid disability claims and was recently named the second worst insurance company in America according to the American Association of Justice.

How should disability insurance work?

To answer this question, we asked Bob Scott, a California attorney and partner with the Advocate Law Group. He explained:

First, you have to be careful of who’s determining what restrictions and limitations are to be applied to the formula. Second, you’ve got to go through what your job duties really are – and those will come from your doctor. Third, you need to determine whether you can do the job with reasonable continuity – every day, week after week, etc.

What happens instead

Scott says that disability insurers such as Unum often think they can get a nurse or a doctor who has no idea of the rules and have them say, ‘Well, the restrictions your doctor put you on are not reasonable.’ However, Scott is adamant that there is no language or policy allowance for them to do that. He also told us that, “These insurers often use a nurse to re-apply the restrictions and limitations without talking to your employer as to what your job was, and most importantly, without talking to your doctor.” Unfortunately, these are not the only types of bad faith practices in which disability insurers engage.

Unum’s bad faith insurance practices

Many of Unum’s former employees have admitted that they were ordered to deny valid claims in order to save the company money. In fact, internal documents referencing the company’s desire to implement cost saving policies have been discovered that corroborated their claims.

If the Unum Group has denied your valid disability claim or rescinded your policy, it may have acted in bad faith. To contact an attorney whose practice focuses in disability insurance law, please click here. Consultations are free, without obligation and strictly confidential.

Case Studies: Disability Insurance Gone Bad

Case Study 1: Jane Doe vs. Unum Group

Jane Doe, a 42-year-old marketing executive, suffered a severe back injury that left her unable to perform her job duties. She filed a disability claim with Unum Group to receive benefits, but the company denied her claim, stating that her restrictions and limitations were not reasonable.

However, Jane’s doctor clearly outlined her condition and provided the necessary documentation. Unum’s denial was based on a nurse’s review without consulting Jane’s employer or doctor, which is against the policy. This case highlights Unum’s bad faith practices in denying valid claims.

Case Study 2: John Smith vs. Unum Group

John Smith, a 50-year-old construction worker, had been paying disability insurance premiums for years. When he suffered a serious injury on the job that rendered him unable to work, he submitted a disability claim to Unum Group.

Despite having clear evidence of his inability to perform his job duties, Unum denied his claim, citing vague policy language. Internal documents later revealed that Unum’s decision was part of its cost-saving policies, as employees were encouraged to deny valid claims to save the company money. This case exposes Unum’s bad faith practices and disregard for policyholders’ well-being.

Case Study 3: Lisa Johnson vs. Unum Group

Lisa Johnson, a 35-year-old teacher, had been paying premiums for long-term disability insurance provided by her employer, the Unum Group. When Lisa was diagnosed with a chronic illness that prevented her from working, she submitted a claim for disability benefits.

However, Unum Group rescinded her policy without valid reasons, leaving Lisa without the financial support she needed. Unum’s actions constituted bad faith insurance practices, as it rescinded the policy and denied Lisa the benefits she was entitled to receive.