A lawsuit against one of the major insurance companies ended with attorneys' fees to the plaintiff. Unum was alleged to have unfairly denied thousands of claims. The plaintiff was awarded several hundred thousand in attorneys' fees. The court found Unum had unfairly denied life insurance claims.
The plaintiff asked for several hundred thousand in attorneys' fees, while Unum contended that the plaintiff's attorneys' fee should be limited at less than one hundred thousand.. The judge considered numerous factors including how culpable the insurance company was in its behavior, whether the attorneys' fees would act as a deterrent and the merits of the two sides. As a result, the court lowered the attorneys' fees but still awarded more than double what Unum argued it should pay in the case.
Lawsuits against life insurance companies such as Unum tend to allege the company practices bad faith insurance by denying legitimate insurance claims on dubious grounds. Sometimes, the denial involves rejecting or ignoring the medical records and applicable law. In other cases, the insurance company claims the applicant for life insurance made material misrepresentations on the application and the policy, therefore, should be rescinded. In accidental death and dismemberment claims, life insurance companies often deny claims by arguing that the death was not the result of an accident. In some cases, they deny valid claims stating that an exclusion applies and takes the case out of the coverage area.
In these and other cases, beneficiaries need to know their rights. First of all, all denials are appealable and can be reversed. If your claim is delayed or the insurance company implies that there is a problem with the claim, call a life insurance attorney immediately. Second, an unfair delay in settling a claim is illegal. Retaining a life insurance lawyer early will help ensure that you claim is handled fairly and expeditiously. If you need help with your claim, our attorneys will be happy to discuss your case with you. We work on a contingent fee basis and will only get paid when we win your case. We also boast the most reasonable contingent fees in the field. Call us now for a free consultation.