The Central Valley Business Times (5/24/13) reports that officials investigating the companies found that workers did not properly consider reports and diagnoses of other organizations and medical professionals. This allegedly included disregarding the findings of independent physicians, Social Security Disability decisions and records provided by workers compensation.
Policyholders who had their claims previously denied may be eligible to be reevaluated. CIGNA will pay $500,000 in fines to the California Department of Insurance.
In this case, policyholders did not have to file a lawsuit because regulators stepped in, recognizing that there were some issues with how claims were being processed. Individuals who face such issues may be eligible to file a lawsuit, depending on how their insurance was purchased.
READ MORE CALIFORNIA DENIED DISABILITY INSURANCE LEGAL NEWS
Meanwhile, some insurance companies are also accused of not properly paying out death benefits to the beneficiaries of life insurance policies. According to Sierra Sun Times (5/7/13), audits have been conducted by State Controller John Chiang into a variety of insurance companies to determine if they improperly failed to pay death benefits, instead depleting cash reserves and then canceling the policy.