CIGNA Wrongly Denied Disability
Consumers who have CIGNA insurance may have been victims of CIGNA denied disability claims, in which CIGNA is accused of violating consumer protection laws. Recently, a regulatory settlement was announced with five states, settling claims that CIGNA' claims-handling procedures did not conform to required standards.
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CIGNA Insurance ClaimsConsumers allege their long-term disability claims were not properly processed by CIGNA employees, resulting in improperly denied disability claims. Regulators in five states investigated CIGNA for allegedly denying initial and ongoing claims that should have been approved, and for terminating payments.
Insurance companies are required to act in good faith when dealing with customers and policyholders. Often, though, they do not live up to this requirement. They use a variety of tactics to avoid or delay making payments to policyholders, including fighting or ignoring medical diagnoses, denying claims without carrying out a proper investigation or evaluation, claiming that necessary paperwork was not sent in time, requiring duplicate and triplicate copies of forms be filled out, and drawing out the investigation process.
Unreasonably denying or delaying a claim is known as bad faith insurance, and many insurance companies have been accused of practicing bad faith insurance.
CIGNA Regulatory SettlementIn May 2013, CIGNA reached a regulatory settlement with five states concerning its handling of long-term disability claims. The settlement required CIGNA Group to:
Improve its claims handling procedures;
Establish procedures to allow the improved claims-handling procedures to be applied to previously denied claims in the states affected by the settlement;
Undergo a two-year monitoring program;
Pay fines and fees of more than $1.5 million.
Included in the settlement were California, Connecticut, Maine, Massachusetts and Pennsylvania. Consumers in each of those states who had their claim denied or payment terminated could have their claims reevaluated. The settlement follows targeted marked conduct examinations that were undertaken by the insurance departments of Maine and Massachusetts beginning on September 15, 2009. Those examinations looked into whether CIGNA conformed to national requirements for claims-handling procedures. Among the irregularities found were not considering the opinions of independent physicians, ignoring decisions made by Social Security and not including workers compensation records in the decision-making process.
As a result, CIGNA has set aside around $77 million to settle claims that were previously denied and may be overturned.
Also involved in the settlement were CIGNA subsidiary companies, including Cigna Health and Life Insurance Company, Connecticut General Life Insurance Company and Life Insurance Company of North America.
CIGNA Denied Disability Legal HelpIf you or a loved one has suffered similar damages or injuries, please click the link below and your complaint will be sent to a Denied Disability Insurance lawyer who may evaluate your claim at no cost or obligation.
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