In response to an investigation into the unfair claims handling practices of CIGNA since 2006, the CIGNA Group has agreed to set aside $77 million to settle claims that it improperly denied long term disability claims and wrongly terminated disability benefit payments. Additionally, CIGNA has agreed to reevaluate claims and review and settle currently open claims.
“This regulatory action is intended to provide long-awaited relief for consumers who have a right to expect that their carrier will make good on contractual promises,” said Connecticut Insurance Commissioner Thomas B. Leonardi, head of the state Insurance Department.
Investigations revealed that CIGNA failed to use available information to appropriately process and evaluate disability insurance claims and that their claims handling practices need improvement. As a result of the investigation, a Settlement Agreement was reached in which CIGNA and its affiliated companies including Life Insurance Company of North America, Connecticut General Life Insurance Company, and Cigna Health and Life Insurance Company are required to take the following corrective actions:
•· Enhance claim procedures to improve the claims handling process to benefit current and future policyholders.
•· Establish a remediation program in which the companies enhanced claim procedures will be applied to certain previously denied or adversely terminated claims for residents of states whose insurance commissioners sign the settlement agreement (in other words, CIGNA has agreed to reassess previously denied and terminated claims in participating states).
•· Participate in a 24 month monitoring program conducted by the insurance departments of five states involving random sampling and on-going consultation.
•· Pay fines and administrative fees totaling $1,675,000.
At Disability Insurance Law Group, we have successfully handled thousands of disability claims including numerous claims administered by CIGNA and its affiliates. We are familiar with CIGNA’s delay and denial tactics and understand what it takes to get a denial overturned. Because of our experience in working with insurance companies, they understand that if an unreasonable denial of benefits is not overturned, we will aggressively pursue our clients’ rights in a court of law. They further understand that with a well prepared appeal, we will have the ammunition needed to defend our clients’ rights in court.
The attorneys at Disability Insurance Law Group encourage you to contact us if you are:
- Have been denied disability benefits or your disability benefits were wrongfully terminated and you need to file an Appeal
- Planning to file a disability insurance application
- Have filed and are experiencing a delay in payment
Free face-to-face and telephone consultations are available for clients nationwide. Call us on our toll free number (866) 363-3628.