Disability Insurance Blog

California Insurance Commissioner Announces Settlement With Life Insurance Company Of North America – LINA


Thursday, October 1st, 2009

California’s insurance commissioner Poinzer announced that the California Department of Insurance has reached a $600,000 settlement agreement with LINA – Life Insurance Company of North America (an insuring subsidiary of CIGNA) – to resolve allegations of disability insurance claims handling violations from February 2005 – June 2006. In addition to the settlement, LINA is to implement changes in its policies, procedures and practices and is going to review any claims that were denied between January 2005 through December 2007.

An on-site examination of claims handling practices conducted by the California Department of Insurance exposed business practices that are best described as outrageous. Decisions were made before medical records were even requested. There were many examples of LINA adjusters ignoring substantial new information after claims had been denied.

We know that this is business as usual for many disability insurance companies, but we congratulate the California Department of Insurance for recognizing that these practices are against the law and doing something about it.

A disability insurance battle is not something a policyholder can easily fight. It took the legal and political muscle of a state insurance commissioner to force LINA to make changes. If you are having a problem with your disability insurance claim, or are about to file a claim and don’t want to go it alone, call our office at 877-LTD-CLAIM (877-583-2524). Leverage our experience in fighting these fights. You are not in this alone.