Consumer Victory Against CIGNA – $77 Million Set Aside to Pay Mishandled Disability Claims

 Breaking News May 23, 2013

CIGNA mishandles long-term disability claims – has to set aside $77 million in settlement with 5 states (ME, CT, MA, PA and CA) to pay additional benefits and current claims in addition to fines.  The problems involved three CIGNA entities:  Life Insurance Company of North America, Connecticut General Life Insurance Company, and Cigna Health and Life Insurance Company, formerly known as Alta Health and Life.

I personally performed functional capacity evaluations over the last couple of years on claimants who were wrongfully denied long-term disability benefits, so I’m glad to see the insurance regulators taking this action to protect consumers.  If you know a policyholder who might need to have their claim reevaluated, a dedicated phone line for questions about the claim re-evaluation process has been set up at 1-855-625-5518.

A copy of the full settlement agreement is available at here under “featured links.”