Unum Group, insurance company, formerly known as Unum Provident, is one of the largest disability insurance providers in the world. Over the past two decades it has cheated Americans out of billions of dollars and been accused of acting in bad faith.
Like all insurance companies, Unum has a legal duty to practice good faith in all professional dealings. This means, they owe a duty of fair dealing, honest disclosure, honoring policy terms and more. Individuals injured by bad faith practices may be entitled to collect damages for both a breach of contract, as well as personal injury. If you suspect you have been affected by Unum’s bad faith practices, you should consult with an experienced attorney to learn more about your rights.
Examples of bad faith practices by Unum:
Targeting high-cost claims for denials
Retroactively changing policies
Stalling and Denial of legitimate claims
Claiming the policyholder is not disabled, when in fact, he/she is
Underpayment of insurance benefits
Other ways Insurance companies can practice bad faith include:
Unnecessary delay when handling a claim
Threatening the policyholder
Failure to offer a reasonable settlement
The Unum Provident Settlement Agreement
The U.S. Department of Labor conducted a thorough investigation against Unum’s practices as lawsuits against them began to mount; particularly those which involved the Employee Retirement Income Security Act of 1974 (ERISA).
As a result, Unum was ordered to pay a $15 million dollar fine, re-evaluate more than 215,000 claims that dated back as far as 1997 and develop new claims practices.