Cigna Denied Long Term Disability Lawsuit

Cigna faces allegations from policyholders that it unreasonably delays or denies payment of long-term disability insurance claims. Policyholders allege they pay into their long-term disability policy in good faith but have their claims denied for illegitimate reasons, putting them in a financially vulnerable situation. When insurance companies such as Cigna fail to properly pay out a long-term insurance claim as promised in the policy, policyholders may be able to file a lawsuit or appeal to have the decision reversed.

Long-term disability insurance is designed to protect policyholders in the event they become sick or otherwise disabled for extended periods of time and cannot perform their work-related duties. Long-term disability plans often provide benefits after the policyholder has been unable to work for a specified amount of time (typically six months), and pay between 60 to 80 percent of the policyholder's pre-disability earnings. Plans vary by company and by policyholder.
  Insurance companies must pay all legitimate claims in good faith—meaning the claim must be approved and paid willingly and promptly. Some companies are alleged to have denied claims to make quotas or protect profits, violating their duty of good faith and fair dealing. Insurance companies might also fail to properly investigate a claim, not inform the policyholder of all terms of the policy, or not provide benefits as promised in the policy. They might deny a claim based on a cursory evaluation of medical documents or a determination that an illness or injury is not legitimate (such as with patients who are diagnosed with fibromyalgia).
  Cigna has faced lawsuits alleging the company failed to properly pay insurance claims as set out in its policies. It has also faced claims of retaliating against patients who attempted to use out-of-network benefits even though their policy reportedly allowed out-of-network healthcare. Some policyholders say they had their claim initially approved only to later have the decision reversed.
  Cigna faces a lawsuit from a woman who was injured in a car accident, alleging the victim should have received proper benefits but her benefits were terminated less than six months after being approved. According to the lawsuit, Theresa Gladney was disabled in a car accident and initially had her long-term benefits approved. A few months later, Cigna reversed the decision, finding she was no longer too disabled to work. Gladney claims she has medical evidence proving she is disabled, but had her claim denied because a doctor failed to return a phone call.
  In 2013, Cigna agreed to settle claims made by various states including Maine about the company's claims handling procedures. As part of the settlement, Cigna agreed to improve their claim handling procedures and establish a program through which previously denied claims would be reviewed.

Policyholders who have had their Cigna long-term disability claim unreasonably denied or delayed may be able to file an appeal or lawsuit against the company to have the decision overturned.
 

CIGNA Denied Long Term Disability Legal Help

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Last updated on Oct-14-20