Disability Insurance FAQ

What Is a Disability Insurance Lawsuit?

Plaintiffs are filing disability insurance lawsuits against insurance companies that have denied legitimate long-term disability claims.

Claims may be denied due to bad faith practices, ambiguous policy definitions, or a failure to act in good faith.

Do I Qualify for a Disability Insurance Lawsuit?

You may qualify for a disability insurance lawsuit if you:

• Filed a valid insurance claim with any of the insurers listed below
• Filed for long-term or short-term disability insurance benefits
• Received a denial within the last six months (or are still waiting for a decision)
• Have not appealed the decision

You may also qualify if you haven’t filed yet but still believe you have a valid claim.

Who Are the Defendants in the Disability Insurance Lawsuits?

Plaintiffs have sued dozens of long-term disability insurance carriers, including:

• Aetna
• Allstate
• Anthem
• Unum
• Hartford
• MetLife
• Prudential
• Mutual of Omaha
• Lincoln Financial Group
• Guardian Life
• Cigna
• Liberty Mutual
• Sun Life Financial
• AIG
• Berkshire
• Broadspire
• Boston Mutual
• CNA
• Colonial Life
• Companion Life
• Dearborn National
• Great-West Life
• HM Insurance Group
• Illinois Mutual
• Monarch Life
• New York Life
• Northwest Mutual
• Ohio National Financial
• Penn Mutual
• Jackson
• Sedgwick
• Trustmark

If any of the insurance companies above denied your valid claim, you could qualify for a disability insurance lawsuit.

What Qualifies as a Bad Faith Denial?

A bad faith denial occurs when an insurance company denies a valid claim and fails to uphold its end of a contract. Essentially,

Examples of bad faith actions include:

• Unnecessary, unreasonable, or purposeful delays
• Threatening you
• Misrepresenting your policy
• Denying your claim without an adequate investigation of the facts
• Denying your claim without an adequate reason
• Offering an extremely low settlement
• Refusing requests for documentation
• Refusing to give you specific information
• Ignoring your emails or calls
• Ambiguous policy language
• Claiming your active policy has lapsed
• Incorrectly interpreting your policy
• Changing your policy terms after you file your claim
• Demanding unnecessary documentation
• Referring you to physicians for alternate medical evaluations multiple times
• Claiming that your disability predates your policy’s effective date
• Arguing that you failed to submit any required documentation
• Claiming that you are covered by other disability insurance
• Arguing that your disability does not affect your ability to work
• Arguing that your injury does not meet your policy’s definition of “disability”

It’s important to note that a denial or delay doesn’t always mean bad faith. A lawyer can help you determine whether your experience qualifies.

What Can I Recover Through a Long-Term Disability Bad Faith Claim?

The damages you can recover depend on the specifics of your case but could include:

• Contractual damages: These are the specific financial losses you incurred due to the denial. Essentially, this is what your claim would have paid out if it was approved.
• Extracontractual damages: These are damages beyond what the insurance company owes you. These damages, which are paid out due to the insurer’s bad faith actions, could include additional economic losses that occurred due to the denial, emotional distress, and attorney’s fees.
• Punitive damages: While rare, punitive damages may be awarded in cases of egregious bad faith.

How Long Do I Have to File a Lawsuit After My Insurance Claim Was Denied?

How long you have to take legal action after an insurance claim denial depends on the state in which you live.

However, you want to act quickly in any case. Building a bad faith case takes time.

What Should I Do If My Claim Has Been Denied?

There are a few things you can do if your disability insurance claim is denied:

• Review the denial letter: This should include a reason for the denial. If not, this could be an example of a bad faith denial.
• Call our team to connect with a disability insurance lawyer near you. You have the right to appeal the denial, but you shouldn’t do it alone. Appealing a denial or attempting to prove bad faith can seem impossible, especially when you are dealing with a long-term disability. An attorney can manage every aspect of your claim or lawsuit while you recover from your disability.
• Continue with your medical care: Some people panic when their claims are denied and assume they won’t be able to afford their medical care without their disability benefits. However, this can give the insurer an excuse to deny your claim. It could claim that you are not injured and, therefore, don’t need disability benefits. You could also worsen your injuries without care.

What Can a Lawyer Do for Me?

A lawyer will handle every aspect of your long-term disability insurance lawsuit. This could include:

• Determining the reason for your claim denial
• Identifying evidence of bad faith
• Determining what damages you can recover
• Managing all communications with the insurer
• Negotiating for a fair settlement
• Representing you at trial

Most attorneys handle bad faith lawsuits on a contingency-fee-basis. This means that you don’t pay anything upfront for legal help. Your attorney is only paid if your case succeeds. Their attorneys’ fees come out of your settlement or award. This could be a percentage of your award or one of the extracontractual damages you recover.