What Are Common Reasons People Sue The Standard Insurance Company?
When an insurance company wrongfully denies or terminates disability benefits, policyholders may have no choice but to take legal action. The Standard Insurance Company—often referred to simply as The Standard—is a well-known provider of long-term disability (LTD), short-term disability (STD), and life insurance policies, many of which are governed by ERISA (Employee Retirement Income Security Act).
At DarrasLaw, America’s top disability law firm, we have decades of experience representing claimants in lawsuits against major insurers, including The Standard. Below are the most common reasons people sue The Standard Insurance Company, and what policyholders should know before filing a claim or appeal.
1. Wrongful Denial of Long-Term Disability Benefits
One of the most frequent reasons claimants sue The Standard is a wrongful denial of long-term disability benefits. Many policyholders meet their policy’s definition of disability, yet still receive a denial letter.
Common denial justifications include:
- Allegations of insufficient medical evidence
- Claims that the condition is “not severe enough”
- Reliance on file reviews instead of treating physicians
- Mischaracterization of medical records
In many cases, these denials ignore substantial documentation from treating doctors and specialists.
2. Termination of Previously Approved Disability Benefits
Another common reason for lawsuits is the termination of benefits after approval. Claimants may receive LTD benefits for months—or even years—only to have them abruptly cut off.
Typical reasons cited by The Standard include:
- Alleged medical improvement without new evidence
- Surveillance footage taken out of context
- Selective use of independent medical examinations (IMEs)
- Transition from “own occupation” to “any occupation” standards
Terminations often occur at predictable policy milestones, raising concerns about insurer bias and cost-containment practices.
3. Failure to Properly Evaluate Medical Evidence
Policyholders frequently sue The Standard for failing to fairly and objectively evaluate medical evidence. This includes discounting:
- Treating physician opinions
- Functional capacity evaluations (FCEs)
- Objective testing results
- Consistent long-term treatment records
Instead, insurers may rely heavily on paper reviews conducted by doctors who never examine the claimant, a practice that has been widely criticized in disability litigation.
4. ERISA Violations and Procedural Errors
Many disability claims through The Standard are governed by ERISA, a federal law that imposes strict procedural requirements on insurers.
Lawsuits often allege:
- Inadequate explanation of claim denials
- Failure to disclose evidence relied upon
- Not providing a full and fair review
- Ignoring deadlines or appeal requirements
ERISA violations can significantly impact a claimant’s ability to receive benefits and are a major focus of litigation handled by DarrasLaw.
5. Misapplication of Policy Definitions and Exclusions
Another common reason people sue The Standard is the misinterpretation or selective application of policy language.
This includes disputes over:
- “Own occupation” vs. “any occupation” definitions
- Mental health or subjective condition limitations
- Pre-existing condition exclusions
- Offsets for Social Security Disability benefits
Insurance policies are complex, and even minor misinterpretations can result in major financial harm to claimants.
6. Bad Faith Claim Handling (Non-ERISA Claims)
While ERISA limits bad faith claims, non-ERISA or individual disability policies issued by The Standard may allow lawsuits for insurance bad faith.
Examples include:
- Unreasonable delays
- Repeated requests for duplicative documentation
- Biased claim investigations
- Predetermined outcomes
Bad faith claims can expose insurers to damages beyond unpaid benefits, depending on applicable state law.
Why Legal Representation Matters in Claims Against The Standard
Insurance companies like The Standard are backed by teams of attorneys and medical consultants. Claimants who attempt to fight alone are often at a significant disadvantage—especially under ERISA’s strict rules.
DarrasLaw has represented thousands of disability claimants nationwide, helping them challenge wrongful denials, terminations, and unfair claim practices by The Standard and other major insurers.
Speak With an Experienced Disability Insurance Law Firm
If The Standard Insurance Company has denied, delayed, or terminated your disability benefits, you may have legal options—but deadlines are critical, especially for ERISA appeals.
DarrasLaw offers free consultations and specializes exclusively in disability insurance law. Our firm has recovered hundreds of millions of dollars in wrongfully denied benefits and is nationally recognized for holding insurers accountable.