Disability Insurance Blog

Lloyds of London Denies NFL Receiver’s Disability Claim


Thursday, March 26th, 2015

Marqise Lee, former USC receiver, and current NFL player for the Jacksonville Jaguars, sued Lloyd’s of London after his long disability insurance claim was denied. Lee, who purchased a $5 million loss-of-value insurance policy in August 2013, was denied on the grounds that he misled insurers about his injury history.

Lee purchased the policy for premiums of $94,600 to cover loss-of-value and total disability insurance. He filed for a claim two weeks after NFL draft day, filing medical documents which showed that his knee was treated throughout the USC Trojan’s season in 2013. Lee’s injury took him down from a first round draft prospect to a second-round pick as the 39th overall selection in the 2014 NFL draft. His salary was therefore substantially lower than it would have been if he were drafted in the first round.

The policy was purchased to cover the difference between his rookie NFL contract and a $9.6 million baseline, up to $5 million. His four year deal with Jacksonville is worth in excess of $5,175,016. Lee filed to collect on his claim for the $4.525 million difference.

See if this sounds familiar:

Lloyd’s of London maintains that Lee misrepresented or otherwise omitted medical information which would have made the policy null and void and sent him a refund of all of his premiums paid, plus interest. But, they are refusing to honor his insurance policy.

Lee and his disability insurance lawyer sued for punitive damages, charging Lloyd’s of London with repeated delay tactics (we know how that works), and making a decision to deny the claim in bad faith, malicious and conscious disregard for Lee’s rights. Lee has a teammate who is also suing Lloyd’s on similar grounds. This seems to be a pattern of theirs, choosing to re-underwrite an insured AFTER a claim is filed.

While Lloyd’s of London may be famous worldwide, with a history and prestige that American disability insurance companies like CIGNA or Aetna can’t hope to have, the fundamental issues are the same. Whether you are an ERISA claimant or own an individual disability policy worth millions, or even just tens of thousands, the tactics of delay and denial are part and parcel of disability insurance claims – regardless of what insurance company is involved.

Our clients come from all walks of life, with the same problem: disability insurance companies are making business decisions about claims that are injurious to our clients. Our practice is dedicated to protecting our clients, fighting for the financial benefits that the insurance companies contracted to provide.

If you’re claim has been denied, is being delayed, or the insurance company is asking you to provide what seems like an excessive amount of medical, financial or other records, call our office. Call us today (877-LTD-CLAIM, 877-583-2524) because the sooner you’re talking with disability insurance lawyers, the sooner you’ll know what you are facing and how we can help.