Disability Insurance Blog

Cigna Disability Settlement – What does it mean for you?


Monday, June 10th, 2013

Claimants who have had problems with their Cigna long term disability insurance policy or who are about to file a claim may be concerned about what may happen as a result of the massive multi-state insurance settlement recently announced. This multi-state settlement involved California, Pennsylvania, Connecticut, Maine and Massachusetts.

As part of the settlement, CIGNA has set aside $ 77 Million dollars for projected payments to policyholders nationwide whose claim were not properly handling. In addition, CIGNA has agreed to pay penalties to the numerous states involved in the multi-state settlement which will amount to $ 1.6 million dollars.

It would be nice to imagine that every bad decision made by claims adjusters and their supervisors will suddenly be reversed, but unfortunately this is not going to be the case. The re-evaluation of claims that were improperly handled between January 1, 2008 and December 31, 2010 will take time to resolve.

We believe that these settlements lack real teeth, and that once the spotlight is gone from CIGNA, they are likely to resume their former practices. As disability insurance lawyers with many years in the field, we were active participants in the UNUM class action lawsuit that took place many years ago. UNUM was in the bright light of public scrutiny, with secret memos that highlighted a widespread company policy of denying and delaying disability claims. One might think that the result of such a highly visible decision would have forced UNUM to become an outstanding corporate citizen but our practice continues to receive many inquiries and represent clients on UNUM claims that have been wrongfully denied and delayed.

If CIGNA actually makes the potentially sweeping changes to how it does business, that would be a very good thing for the Americans who are struggling with disabilities and do not need the added burden of a protracted battle with an insurance company at a time when their lives are most impacted.

Unfortunately through our years of practice, we know that this is not a likely scenario. We anticipate that our practice will continue to represent Cigna policyholders who are baffled by seemingly irrational decisions about their ability to work.

If you have a Cigna disability insurance policy and your claim has been delayed, denied or terminated, the multi-state decision may not help you in a timely matter or it may not help you at all. Contact an experienced disability insurance law firm that knows the story behind the headlines. Call us today at 877-LTD-LAW (877-583-2524) to learn how we can help.