13 October 2002 and 17 November 2002
News programmes expose claims denial practices in the USA at Unum (who are currently advising the UK government on welfare reform).
What: Unum claims-processing employees speak out to NBC’s Dateline7 and CBS’s 60 Minutes news programmes over measures that pressured them to deny valid claims in order to meet budget goals. One worker said bonuses were awarded to some managers who closed especially large claims. It is reported that in the last five years, UnumProvident has been sued almost 3,000 times over closed claims.
Why significant: Provides evidence that knowledge of Unum’s bad faith practices was in the public domain while the UK government was seeking its advice on welfare reform.
Citations
'Did Insurer Cheat Disabled Clients?', David Kohn, 2002
'TRUST LAW AS REGULATORY LAW: THE UNUM/PROVIDENT SCANDAL AND JUDICIAL REVIEW OF BENEFIT DENIALS UNDER ERISA', John H. Langbein*
'Unum Provident – Story Behind the Claims', Pillsbury Coleman