America’s Top Disability Lawyer, Frank N. Darras Announces:CIGNA To Pay $1.6 Million in Fines/Fees and up to $70 Million to Denied Policyholders

Ontario, CA (PRWEB) May 24, 2013

California Insurance Commissioner Dave Jones announced that he, along with four other state insurance regulators, has reached a settlement with the CIGNA group over claims handling practices for long-term disability insurance. The settlement comes after individual examinations into the insurance company’s claims handling practices by the California, Connecticut, Maine, Massachusetts, and Pennsylvania state insurance departments. As a result, the CIGNA companies are now reviewing past claims that were improperly handled in California from January 1, 2008 to December 31, 2010.

“This is a huge win for California long-term disability consumers. We have seen too many cases of wrongful denials in recent years and insurance companies delaying the claims process. For people suffering from a long-term disability, it’s essential to their financial security that claims are handled quickly and fairly,” says Frank N. Darras, America’s top disability insurance lawyer.

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 have set aside $77 million for estimated payments to wrongfully denied policyholders nationwide. They are also required to pay a $500,000 penalty to the California Department of Insurance and $150,000 to reimburse the department for the cost of ongoing monitoring that is required under the settlement agreement.

“This settlement will help thousands of policyholders whose claims were not handled properly and who were wrongfully denied in the past. It is a welcome relief and one worth celebrating! It is also a win for future policyholders who might have to file a claim. This agreement should also help currently disabled insureds by adding additional good faith pressure to handle claims promptly and fairly, while putting a national spotlight on Cigna’s claim handling ,” says Darras.

According to Jones, insurance department officials found that claim handling irregularities, such as not giving due consideration to the medical findings of independent physicians, discounting information provided by Social Security Disability decisions, and not giving appropriate consideration to workers compensation records.

Under the settlement agreement, the companies are required to:

   •      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 also signed the settlement agreement
   •     Participate in a 24-month monitoring program conducted by the insurance departments of the five lead states
   •     Undergo a re-examination upon completion of the monitoring period
   •     Pay fines and administrative fees totaling $1,675,000 to the five lead states

“Any person who had their claim denied from January 1, 2008 to December 31, 2010 is entitled to have their claim reviewed. It is advised they seek help from a top disability insurance lawyer or firm to ensure their claim gets a fair review,” 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

About DarrasLaw

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.

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