Unum California Settlement Agreement: What You Need to Know
The Unum California Settlement Agreement is a legal document that outlines the terms of a settlement between insurance company Unum and the state of California. The settlement came about as a result of an investigation by the California Department of Insurance into Unum`s handling of disability insurance claims.
If you or someone you know has a Unum disability insurance policy in California, it is important to understand the details of this settlement agreement and how it may impact your coverage.
Here are the key points you need to know:
1. Unum has agreed to change its claims handling practices
As part of the settlement agreement, Unum has agreed to make changes to its claims handling practices. These changes include providing clearer explanations to claimants when benefits are denied, allowing claimants to appeal decisions, and providing more training to claims handlers.
2. Unum will pay a significant fine
Unum has agreed to pay a fine of $8 million to the state of California as part of the settlement agreement. This fine is in addition to the restitution payments that Unum has already made to policyholders who were unfairly denied benefits.
3. Policyholders may be eligible for additional benefits
If you have a Unum disability insurance policy in California and were denied benefits between January 1, 2003, and December 31, 2008, you may be eligible for additional benefits under the terms of the settlement agreement. To determine your eligibility, you should contact Unum directly or speak with an attorney familiar with disability insurance claims.
4. The settlement may have broader implications
While the Unum California Settlement Agreement specifically applies to Unum`s practices in California, it may have broader implications for the insurance industry as a whole. Other insurance companies may take note of the settlement and make changes to their own claims handling practices to avoid similar legal action.
As a policyholder, it is important to stay informed about any changes to your coverage or benefits as a result of the Unum California Settlement Agreement. If you have questions or concerns, be sure to contact Unum or speak with an attorney who can advise you on your rights and options.