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The Commissioner of the California Department of Insurance recently announced that it has reached a settlement with the CIGNA Group regarding potentially wrongfully denied claims. The insurer has agreed to revisit denied long term disability applications from California residents that were filed between 2008 and 2010.

California is one of five states who have been reviewing the claims procedures of the Pennsylvania-based insurer. According to a press release from the Department of Insurance, regulators found consistent discrepancies in CIGNA’s claims review process, including:

  • Failure to give due consideration to medical determinations made by independent physicians
  • Failure to give appropriate weight to information provided by Social Security Disability claims
  • Failure to consider workers compensation records

Anyone who believes they might have been wrongfully denied long term disability coverage between 2008 and 2010 by any of the following CIGNA companies should contact a disability insurance attorney right away to discuss their legal options:

  • CIGNA Health and Life Insurance Company (formerly known as Alta Health and Life)
  • Connecticut General Life Insurance Company
  • Life Insurance Company of North America

CIGNA has set aside $77 million to compensate policy holders for disability insurance claims that were mishandled between 2008 and 2010. The California Department of Insurance will receive $500,000 from CIGNA, a penalty for the insurers wrongful conduct, and an additional $150,000 to cover the cost of monitoring CIGNA’s ongoing compliance.

Source: California Department of Insurance, “Insurance Commissioner announces multi-state settlement for improper disability claim handling practices case against major insurer,” May 24, 2013

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