Re: Class action status OK'd Unum Group suit

[Guest guest]

This a good time to mention the bad faith movie again. It applies to other

disability insurance companies too.

www.badfaithdoc.com

tigerpaw2c <tigerpaw2c@...> wrote:

Class action status OK'd Unum Group suit

Sep. 4, 2007 (Thomson Financial delivered by Newstex) --

www.corporatecrimefighters.com

CHATTANOOGA, Tenn. (AP) - A federal judge Tuesday granted class-

action status to a lawsuit that contends Unum (NYSE:UNM) Group, the

nation's largest disability insurer, schemed to deny or terminate

claims of thousands of disabled Americans.

Jim Sabourin, a spokesman for the Chattanooga-based company,

described the order as 'procedural.' He said 'it has nothing to do

with the merits' of the 2003 lawsuit.

The suit contends Unum Group violated the 1974 Employee Retirement

Income Security Act, or ERISA, in claims handling, partly by

creating secret documents in which non-medical employees set

a 'target date for cutting off future disability payments.'

The lawsuit was filed before 2004, when insurance regulators in 49

states agreed to settle an investigation of Unum Group's claims

handling, Sabourin said. That agreement required Unum Group,

formerly UnumProvident, to reconsider about 200,000 claims and pay a

$15 million fine.

The company in March changed its name to Unum Group, which includes

subsidiaries Unum Life Insurance Co. of America, Revere Life

Insurance Co., Unum National Insurance Co., and Provident Life and

Accident Insurance Co.

An attorney for the plaintiffs, M. Houston, declined comment.

Sabourin said the company as part of the 2004 agreement is almost

finished reassessing claims denials and terminations.

'It's a procedural ruling focused solely on class certification,'

Sabourin said. 'The relief sought is exactly what we have been doing

in the reassessment process through the past two years.'

He said that of the reassessed claims 'about 30 percent' of the

initial decisions were changed.

The order signed by U.S. District Judge Curtis L. Collier shows the

suit was filed by seven plaintiffs who are 'insured under group long-

term disability benefit plans' policies underwritten and managed by

UnumProvident's subsidiaries.'

The plaintiffs contend the company denied more than 31,000 new

claims from June 30, 1999 to the date of the suit filing and that at

least 6,200 plan beneficiaries were 'subjected to defendants'

alleged illegal claims practice.'

Collier in the class action order said 'plaintiffs have not

requested monetary relief. What they have requested is `declaratory

relief determining the illegality of the conduct alleged and

injunctive relief whereby UnumProvident and its subsidiaries are

ordered to immediately cease, in all states of the United States of

America, engaging in the offending practices.''

Collier said that if the claims are proven true 'some plaintiffs'

may receive monetary relief.

Unum shares rose 48 cents to $24.95 on the New York Stock Exchange

Tuesday.

Webmaster's Comments: How I hate the stock market. When a company

does wrong their stock goes up. When wages drop, benefits are cut or

jobs are exported to China, stock goes up. It's like a barometer of

misery.

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