Ontario, CA (PRWEB) July 22, 2013
It has been nearly three months since the May 13th Regulatory Settlement Agreement and Targeted Market Conduct Examination on Disability Claim Handling practices was signed. As new details emerge regarding the settlement with Cigna group over claims handling practices for long-term disability insurance, Frank N. Darras, the nation’s top disability lawyer offers clarification of some terms of the agreement.
May 13, 2013
A settlement agreement comes after individual examinations into Cigna’s claims handling practices by the California, Connecticut, Maine, Massachusetts, and Pennsylvania state insurance departments. As a result, the CIGNA companies were instructed to begin reviewing past claims that were improperly handled in California from January 1, 2008 to December 31, 2010.
Several companies were involved in the settlement, including CIGNA Health and Life Insurance Company (formerly known as Alta Health and Life), and Connecticut General Life Insurance Company, Life Insurance Company of North America. They set aside $77 million for estimated payments to wrongfully denied policyholders nationwide. They were also required to pay a $500,000 penalty to the CaliforniaDepartment of Insurance and $150,000 to reimburse the department for the cost of ongoing monitoring that is required under the settlement agreement.
"Today, the settlement reviews now encompass 47 states and are invisible to disabled policyholders. The only notice insureds will receive from Cigna is first, if the Company needs additional medical, vocational or financial information from the claimants. In which case the insured will receive correspondence from Cigna, detailing what they need to submit,” says Darras.
Second, if Cigna determines additional benefits are due the insureds, each person will be notified by letter of the findings and the amount of benefits to be paid. Along with this letter will be a waiver of rights to further litigate against Cigna.
“In light of new details emerging about this settlement, pay close attention to any correspondence you receive from Cigna. Take time to consult a top disability lawyer to help navigate this settlement and to ensure you get what you deserve,” says Darras.
About the California Department of Insurance
Life Insurance Company of North America ("LINA"), and the California Department of Insurance entered into a Stipulation and Waiver, File Number UPA 2012 00018 signed on May 10, 2013 by Matthew G. Manders, President of LINA.
The California Department of Insurance issued this press release:
For Release: May 24, 2013
Insurance Commissioner announces multi-state settlement for improper disability claim handling practices case against major insurer CIGNA to pay $1.6 Million in fines/fees and up to $70 Million to policyholders
See more: See http://www.maine.gov/pfr/insurance/Admin_Enforcement_Actions/RSA_2013/CIGNA_RSA.pdf
About DarrasLaw America's Top Disability Firm
DarrasLaw, its attorneys, including founder Frank N. Darras, the nation’s top disability insurance attorney, have received numerous honors and awards from peers, validating the claim that we are America's top disability firm. Lawdragon has singled out Frank N. Darras for five years in a row as one of the Top 500 Lawyers in America. Since its inception, Super Lawyers has honored him by naming him to its list for his work with disability insurance policyholders. The American Association of Justice lists him as one of the Top 100 Trial Lawyers in California. Best Lawyers in America has profiled DarrasLaw and the firm's accomplishments on behalf of the disadvantaged and disabled.
At DarrasLaw, our compassion goes hand-in-hand with our legal expertise. We take pride not only in the results we achieve, but the care our team provides along the way. We hire only the top disability attorneys and staff, including our in-house nurse, for their compassion as much as their expertise and knowledge. Hiring the cream of the crop has been critical to maintaining our position as America's top disability firm.
Our national reach plays a role too. People from all 50 states turn to us for help with individual disability insurance matters.
Nationwide, we review more than 2,500 claims a month. In any given year, we handle more cases than many firms handle in their lifetime. We have recovered more than $750 million in wrongfully denied insurance benefits.
Darras is available for interviews. Contact robin(at)mcdavidpr(dot)com.
Read the full story at http://www.prweb.com/releases/2013/7/prweb10953509.htm