After extensive examination, Cigna (aka LINA) faces major consequences for improper denials of long term disability claims. In a settlement with five state insurance regulators (California, Connecticut, Maine, Massachusetts, and Pennsylvania), Cigna is responsible for setting aside $77 million to fund a re-evaluation of previously denied claims.
Cigna has agreed to review a subset of past long-term disability claims which were denied in 2009 and 2010 (California residents will have claims reviewed for 2008 through 2010) to see if they meet updated claims standards. Preparing for a possible payout to policyholders, Cigna has set aside $48 million as they review their procedures for gathering information and documenting decisions in claim files.
“This regulatory action is intended to provide long-awaited relief for consumers who have a right to expect that their carrier will make good on contractual promises,” Connecticut Insurance Commissioner Leonardi said in a statement. “This settlement resulted from market conduct exams and encompassed issues of serious concern.”
This regulatory settlement also requires Cigna to improve their claims handling process to benefit current and future policyholders, participate in a 24-month monitoring program, and pay fines and administrative fees totaling $1.7 million. See http://www.hartfordbusiness.com/article/20130522/NEWS01/130529904
As attorneys who represent clients unfairly denied long term disability benefits, we are unfortunately all too familiar with improper decisions and wrongful denials by insurance companies. At Kantor & Kantor, we spend every working day correcting and challenging improper disability denials so that our clients have access to the disability benefits to which they are entitled. If you have questions about your long term disability insurance claim, do not hesitate to contact us for a no-cost consultation.
We understand, and we can help. www.kantorlaw.net (800) 446-7529