What is the Main Reason People Take Legal Action Against The Standard?
The Standard is a nationally recognized insurance provider, offering life insurance, disability insurance, and retirement plans to millions of policyholders. While many clients have positive experiences, some encounter difficulties that lead them to pursue legal action. Understanding the primary reasons behind these disputes is crucial for policyholders and anyone considering a claim.
Denial of Disability Claims: The Most Common Issue
The leading reason people take legal action against The Standard is the denial of disability insurance claims. Disability insurance is designed to replace a portion of income when illness or injury prevents a policyholder from working. Policyholders pay premiums with the expectation that their insurance will provide financial support in these situations.
However, claims are often denied for reasons such as:
- Insufficient medical documentation: The insurer may argue that submitted medical records do not prove a disabling condition.
- Disputed interpretations of policy language: Complex terms in the insurance policy may be used to justify a denial.
- Coordination with other benefits: Issues arise when The Standard reduces payouts due to other employer-provided insurance.
When claims are denied, individuals frequently turn to legal counsel to secure the benefits they are rightfully owed.
Disputes Over Benefit Amounts
Even when claims are approved, disagreements over the amount of benefits paid can lead to legal action. Policyholders may receive less than expected due to calculation methods, partial disability interpretations, or offsets for other income sources.
These disputes can create financial hardship, particularly for those unable to work, and often require legal expertise to resolve effectively.
Allegations of Bad Faith
Another reason people sue The Standard is insurance bad faith. Bad faith occurs when an insurer acts unfairly or dishonestly in handling claims. Examples include:
- Unreasonable delays in processing claims
- Denying claims without sufficient explanation
- Misrepresenting policy coverage
Lawsuits alleging bad faith not only seek owed benefits but may also pursue additional damages to hold the insurer accountable.
Why Legal Action Protects Policyholders
Insurance policies are legally binding contracts, often filled with complex language and requirements. Working with an experienced disability claim lawyer or insurance attorney helps policyholders:
- Understand their policy and claim rights
- Compile proper medical documentation and evidence
- Challenge claim denials effectively
- Ensure fair treatment and enforcement of insurance contracts
Legal intervention is often the only way to guarantee that policyholders receive the benefits they deserve.
Other Insurance Disputes with The Standard
While disability claim denials are the most frequent issue, policyholders may also encounter disputes regarding:
- Life insurance claim denials
- Retirement account errors or miscalculations
- Administrative mistakes or miscommunications
Recognizing these potential pitfalls allows policyholders to act quickly and protect their financial interests.
Insurance is meant to provide security and peace of mind, but claim denials or disputes with The Standard can leave policyholders frustrated and financially vulnerable. Denial of disability benefits, disputes over claim amounts, and allegations of bad faith are the main reasons people take legal action.
If you believe your insurance claim has been unfairly denied, consulting with an experienced insurance attorney is crucial. Legal expertise ensures that your rights are protected, and you receive the full benefits promised under your policy.