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Long Term Disability Insurer-Unum paying the price

Long Term Disability Insurer, Unum Provident, appears to be complying with the terms of the Multi-State Regulatory Settlement Agreement according to Eric Dinallo, the New York Insurance Superintendant.

In November 2004 Unum, the Department of Labor and a number of states entered into a settlement agreement requiring Unum to pay a $15 Million dollar fine and reassess thousands of claims as a result of Unum’s unfair claims handling practices.

Recently, an examination of Unum’s reassessment practices determined that Unum appeared to be complying with the terms of the Regulatory Settlement Agreement. More than 23,000 claims have been reassessed with 41.7 % resulting in reversal with a payout of over $676 million dollars in additional long term disability benefits.