CIGNA Reaches Regulatory Settlement Agreement with Massachusetts Prompting the Review of Disability Benefit Denials

On May 12, 2013, the state of Massachusetts took a step in the right direction when it let CIGNA know that its unscrupulous claims handling procedures as they relate to disability benefits under ERISA governed long term disability policies would not be tolerated. Known as the CIGNA Regulatory Settlement Agreement, the settlement was entered into by five states (California, Connecticut, Maine, Massachusetts, or Pennsylvania) and the following insurance entities Life Insurance Company of North America, Connecticut General Life Insurance Company and Cigna Health and Life Insurance Company (all under the umbrella of the more commonly known “CIGNA”).

Massachusetts Fines Cigna $250,000 For Unreasonable Long Term Disability Claim Handling

The Regulatory Settlement Agreement was reached after an investigation was initiated on September 15, 2009 by the Maine Superintendent of Insurance and the Massachusetts Commissioner of Insurance to investigate CIGNA’s claims handling practices as they relate to ERISA governed long term disability policies. Although the details are not yet clear as to what information the investigation revealed, the results of same prompted the Massachusetts Department of Insurance to fine CIGNA $250,000.00 as well as assess an additional $150,000.00 fee.

“Massachusetts has always done a good job of protecting it’s citizens from the unreasonable actions of insurance companies and it is great to see that they are trying to make Cigna act ethically, reasonably and professionally,” stated Attorney Gregory Michael Dell, a nationwide disability insurance attorney and member of the Massachusetts Bar Association. The state of Massachusetts will continue to monitor Cigna for a 24 month period in order to make sure Cigna complies with the Regulatory Settlement Agreement. A complete copy of the agreement can be viewed by clicking here.

In total CIGNA has been fined over $1.6 million dollars as a result of what was deemed to be unfair and unreasonable claims handling practices and has allegedly set aside over $75 million to pay potential claims to be reassessed. If you’re a Massachusetts resident whose long term disability claim was denied or terminated in 2009 and 2010 your claim may be eligible for reassessment. It is important to note that if you receive notice from CIGNA that your claim is eligible for reassessment you MUST notify CIGNA of your intent to have your claim reassessed within 60 DAYS of the letter.

Attorneys Dell & Schaefer is available to provide you with an immediate free consultation to advise you as to the best way to collect Cigna disability benefits that may have been wrongfully denied. Click here for additional detailed information about the terms of the Cigna Settlement Agreement.

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Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

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No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

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Dell & Schaefer Client Reviews   *****

Dr. Robert F.

A year ago in August I had the unfortunate situation where I injured my left hand playing in a recreational adult ice hockey game. My first reaction was fear, panic, and my work career is in danger. Having a job as a physician my hands are critical in day to day life but more important to do my job. I remembered at that point a local radio discussion about disability and knew that I had bought a policy 20 years ago and never thought I’d need it but always paid the policy just in case of a potential need.

I contacted Dell and Schaefer and I must say it was one of the best decisions of my life. Now my attorney, Cesar all I can say is THANK YOU! Michal THANK YOU! It at times going through the process was nerve racking scary but they walked me through it and always were there for my questions and concerns. When your life changes in one second you don’t know how to react. The group at Dell & Schaefer do. They understand not only what your going through but realise its individual for each client but always take a personal interest in your concerns. All I can say is my life has changed but choosing Dell & Schaefer to assist me in my claims process was one of the best decisions I ever made in my life

Thank you Cesar, Michal, and the whole firm. I’m with you for life.

Regards, Dr. Rob F.

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