Disability insurance claims that are being handled by Lincoln Financial are facing headwinds. Lincoln claims are being denied and terminated in a wave of activity that is outside the norm. When denials like these occur, a claimant should be armed with the necessary information and tactics to fight back.

Discovery in the litigation process has been expanded in various venues and Lincoln could face scrutiny regarding its budgets, goals, or business practices.

As one of the nation’s leading disability insurance law firms, Quadrino Schwartz commonly receives Lincoln Financial disability inquiries. We represent those Lincoln Financial policyholders who have submitted claims and have had their claims either delayed, disputed, denied or terminated. Our disability insurance lawyers can be contacted through the form here or by calling toll-free at 1-800-745-1755 for help regarding your Lincoln Financial disability claim denial.

NOTE:

The Lincoln National Life Insurance company was founded in Fort Wayne, Indiana on June 12, 1905.  Along with life insurance, the company also provides Lincoln Financial disability insurance.  In 1911, Lincoln Life reported $6.5 million of life insurance in force with $250,000 in premium income and $750,000 in assets. During its first 50 years – from 1905 to 1955 – Lincoln Life grew to become the ninth largest life insurance company in the United States. In 2006, Lincoln merged with Jefferson Pilot Financial.

A federal appeals court has upheld a bad faith verdict and substantial awards to a disabled man victimized by UnumProvident Corporation and its subsidiary Provident Accident and life. Although portions of the damages awards had been reduced by the trial judge after the trial, the substantial sums of $3 million for punitive damages and $1.2 million for emotional distress and other harm were upheld and must now be paid by Unum to Bruce Leavey , the disabled claimant.

In early 2001 Leavey filed his long term disability insurance claim, along with proof that he was receiving appropriate care. His claim had initially been approved and paid on a monthly basis, as required under his disability insurance policy. However, the insurance company, UnumProvident (the parent company handling the disability claim), terminated the benefits.

When Leavey took Unum to court, he obtained a decisive victory. Because Arizona law applied, he was able to seek more than just the monthly disability benefits. The jury ruled in his favor on disability, but he was also awarded “bad faith” damages of $15 million in punitive damages and $4 million in compensatory damages for emotional distress and other harm. Based upon certain legal principles that limit the size of these awards, the trial judge reduced the awards to $3 million in punitive damages and $1.2 million in compensatory damages.

In ruling in Leavey’s favor on the appeal the Court concluded that Unum acted “not only in bad faith but also ‘with an evil mind’”, and that Unum had “sought to influence the opinions of independent medical examiners”. Furthermore, the Court found that Unum and Provident “misrepresented the opinions of those examiners”. In addition, the court found that “Unum. . . . subjected Leavey’s claim to a roundtable review, the sole purpose of which was to close expensive claims; that Unum sought to influence the opinions of independent medical examiners; that Unum misrepresented the opinions of those independent medical examiners in its letter to Leavey announcing the closing of his claim; and that Unum knew that Leavey was a vulnerable individual who suffered from anxiety and depression, was recovering from a serious drug addiction, and was at a high risk of relapse”.

A Nevada jury has returned yet another bad faith disability verdict against Unum and Paul Revere in the amount of $60 million. In the same case, Merrick v. Paul Revere, a prior jury had returned a verdict of $11.65 million, but Unum appealed and a new trial was ordered based upon certain legal errors. The second trial focused upon the proper punishment for Unum and Paul Revere, based upon their longstanding scheme to improperly deny and terminate legitimate disability claims.

The jury in both trials heard evidence regarding the unethical practices of Provident Life and Accident Insurance Company that were merged into and became a part of Unum and Paul Revere. Stopping these practices is part of the relief sought in the disability class action commenced and being pursued by Quadrino Schwartz against Unum, Paul Revere, and Provident. The case was certified as a class action by a federal court in Tennessee in September, 2007 and is currently on appeal in a federal appeals court in Cinncinnati. For more information on the Quadrino Schwartz class action, visit our minisite at: http://unumprovidentclassaction.net

Several States, such as Arizona, Nevada, California, Pennsylvania, Florida, New Mexico, Montana and Vermont have viable “bad faith” laws or legal precedent that will allow a claimant to sue in court for additional financial damages, such as punitive damages. Quadrino Schwartz prosecutes bad faith cases long term disability cases in all States in which these damages can be sought. For more information, visit: http://www.disabilityinsurancelawyers.com/practice_areas/more/bad-faith-lawsuits