Cigna, headquartered in Bloomfield, Connecticut, has settled with insurance regulators to re-evaluate claims for long-term disability insurance. The insurance company will set aside a total of $77 million, potentially providing more benefits for people in five states:
Cigna was rejecting initial and ongoing claims that should have been approved but were denied, Insurance Commission regulators said. The life insurance subsidiaries in the states will have to upgrade their procedures for handling claims for long-term disability customers, both current and future.
“This regulatory action is intended to provide long-awaited relief for consumers who have a right to expect that their carrier will make good on contractual promises,” said the head of the Connecticut state Insurance Department, Thomas B. Leonardi.
The settlement, Leonardi said, “resulted from market conduct exams and encompassed issues of serious concern.”
“This regulatory settlement agreement,” said Cigna spokeswoman Amy Turkington, “grew out of a normal cycle of review by state regulators. As part of the settlement, we are voluntarily agreeing to review an isolated subset of past long-term disability claim files from 2009 and 2010.” She added that in California, reviews also would be conducted for claims made in 2008.
The company’s subsidiaries in the five states are reevaluating claims and have reserved about $48 million to pay potential additional benefits plus $29 million for claims that are open today. Cigna agreed to pay $1.675 million in penalties. Connecticut will get $150,000 of that amount to oversee the company’s compliance.
To discuss your disabilities claim with a personal injury lawyer in Connecticut, contact Berkowitz and Hanna LLC.