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Unum Group Agrees to Settle Unum Lawsuit for $46 Million

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Los Angeles, CAThe insurance provider known in recent years as Unum Group has struggled beneath a black cloud of controversy amidst accusations of wrongdoing and bad faith insurance. While the insurer has undertaken various efforts to distance itself from a reputation that has dogged Unum insurance for some time, continuing Unum lawsuits appear to suggest that consumers are still having their problems with Unum, or so it is alleged.

Earlier this month, a settlement worth $46 million was granted preliminary approval following a class-action Unum Insurance lawsuit alleging Unum improperly calculated long-term care benefits on behalf of its policyholders.

Unum Group, known previously as Unum Provident and First Unum, has been accused variously of bad faith conduct with regard to Unum long term disability insurance, denial of legitimate claims and other alleged conduct.

This latest Unum Life Insurance lawsuit was brought in US District Court, Central District of California (Don et al v. Unum Group et al, Case No. CV 13-4502-DSF [VBK]).

Plaintiffs are Michael Don, identified as the Executor of the Estate of Ruben Don, Leroy Little, Tamara Pelham and Carolyn Jan Little. Defendants are Unum Group of Delaware, and Unum Life Insurance Company of America, based in Maine.

According to the Unum long-term care insurance lawsuit, plaintiffs alleged that Unum used the “effective date” of the policy rather than the actual policy date, when calculating the policy anniversary. This alleged miscalculation, the lawsuit asserts, cost plaintiffs and class members in excess of $18 million.

It was also alleged in the lawsuit that Unum Group, when calculating increase for inflation, based its calculations on the “remaining” Lifetime Maximum Benefit Amount. Plaintiffs held that this was done, in spite of the word “remaining” appearing nowhere in language pertaining to riders for inflation protection or the provision for a benefits increase. This error is alleged to also have cost plaintiffs and class members in excess of $18 million.

Plaintiffs also asserted that when duplicate copies of their long-term care policies were requested, exact copies of the original policies were not duly provided by Unum.

According to the terms of the settlement, an additional six weeks’ worth of benefits (or 1.5 months) based on the insured’s original monthly benefit amount as stated in the policy would be payable to those insureds who reach their Lifetime maximum Benefit Amount.

A fairness hearing is scheduled for June of this year. The exact amount of the settlement as initially approved is $45,988,014.52 million with final approval pending. Unum denied any wrongdoing in the matter, but agreed to the settlement in part to avoid further litigation stemming from the Unum lawsuit.

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READER COMMENTS

Posted by

on
Can you tell me the status of the above settlement. Any updates?

Posted by

on
Can you tell me the status of the above settlement. Any updates?

Posted by

on
I received the documents of the case above. I haven't heard anything since then. How do I find out of the outcome?

Posted by

on
I have been on disability with Unum for many years. I am also on Social Security disability. I am 62 years old. Should I have received cost of living increases over the years. I have always been paid the same amount since day one.

Posted by

on
I received a letter a few years ago regarding a class action suit pertaining to the interest paid on life policies. How can i find out the outcome of this suit?

Posted by

on
Is there any updates on the settlement since the hearing back in June??

Posted by

on
What is the payout? When can we expect any further notification on the procedures? I've been trying to figure out the June hearing for several weeks

Posted by

on
I have had thee worst time with this woman at Unum - after 70 plus surgeries & procedures. She stalks my life, in which I was forth coming about my social media. I suffer from many different diagnosis and she feels because I can make a post on Fb or wherever that I am qualified to hold down a job with the medications that I have to take to maintain my illnesses. Some people read books to relax, when i am laying down or trying to rest I read FaceBook. I have sent her many piece of paperwork as my own physician and NPC that I am OCD with my large medical surgical history. Some of the medications have serious side effects in which I pointed them out. She didn't care " about what the drug store has to say " end quote. Everytime I go to the doctors I fax - immediately the documents they give me to show, time place date... I send all my doctors the same medical information to any and all of my treating physicians. Some appointments I missed because I have severe insomnia, have over slept or didn't have anyone to drive me cause these medications you CAN NOT DRIVE. I have to rely on people to take me, or suffer and don't take my daily meds so I can at least drive to them. She talks to me like sh*t, treats me like I am a scam artist with all of these diagnosis & surgeries that I have. In 2 weeks I will be at number 71... What do I do.

Posted by

on
I received the documents sent to me on the above Unum case. I have moved. I would like to receive the settlement agreement by mail if I could. I would appreciate your help in this matter. If this matters at all when I had the policy, I requested a copy and never could get it.

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