:: NY Insurance Department Press Release – UNUM Meeting Settlement Requirements

Consumers whose claims previously had been denied will receive a total of $676.2 million in additional benefits, Dinallo said. More than 23,000 claimants sought to have their denied claims reassessed as part of the settlement agreement and 41.7% of these were reversed in whole or in part. New York claimants gained benefits worth $59.8 million.This follows a 2003 investigation into whether the company had inappropriately denied claims for benefits under individual and group long-term disability insurance policies. That investigation was conducted by the New York State Attorney General’s Office, the New York State Insurance Department, state insurance regulators conducting a multi-state examination led by Massachusetts, Maine and Tennessee on behalf of all the other states, and the United States Department of Labor.As a result of that investigation, the four states and the Department of Labor entered into the regulatory settlement agreement with the company in November 2004 requiring Unum to pay a $15 million fine, to reassess the claims that previously had been denied, and to completely restructure its claim handling procedures to ensure objectivity and fairness.