Dearborn National/Dearborn Group faces disability denial lawsuit from disabled account clerk of Katz Insurance Group diagnosed with PTSD

Recently, a former account clerk of the Katz Insurance Group filed a lawsuit against the Dearborn National/Dearborn Group through a disability attorney at the District Court for the District of Maryland. In the case of Tosha Pederson v Fort Dearborn Life Insurance Company, the plaintiff alleged that Dearborn National/Dearborn Group had acted arbitrarily and capriciously in its decision to deny the plaintiff’s claim for long term disability (LTD) benefits.

Dearborn National/Dearborn Group Claim Denial History

The plaintiff was formerly employed as an account clerk with the Katz Insurance Group. While working with the Katz Insurance Group, she participated in an employee welfare benefit plan issued by Dearborn National/Dearborn Group. Dearborn was also responsible for administrating the policy and paying out benefits to claimants. Under the plan, the plaintiff is entitled to LTD benefits she fulfilled the definition of total disability under the plan. Under the plan:

Total disability or totally disabled means during the elimination period and the next 24 months you are:

1) Unable to perform each and every duty of your regular occupation on a full time basis because of a disability

  • Caused by sickness or injury
  • That started while you are insured under the policy and

2) After 24 months of benefits have been paid, you will continue to receive payment only if you are unable to perform with reasonable continuity each and every duty of your regular occupation or any other occupation for which you are or become reasonably fitted by training, education, experience, age and physical and mental capacity.”

Due to post traumatic stress disorder, the plaintiff ceased working with the Katz Insurance Group on May 28th 2009. the plaintiff was paid 13 weeks of short term disability benefits between June 17th 2009 and September 16th 2009. Dearborn National/Dearborn Group later initiated a review to determine whether the plaintiff was qualified for LTD benefits. On January 20th 2010, the plaintiff was informed by Dearborn that her claim for LTD benefits was denied.

On July 26th 2010, the plaintiff filed an ERISA appeal to Dearborn National/Dearborn Group’s decision to deny her LTD benefits. The appeal was denied by Dearborn on September 28th 2010. Nevertheless, Dearborn National/Dearborn Group did determine that the plaintiff was entitled to LTD between August 27th 2009 to August 31st 2009.

A second appeal was filed by the plaintiff on November 19th 2010. Dearborn National/Dearborn Group, in response issued its final denial to the plaintiff on December 29th 2010. The denial was based on a conclusion that the medical documentations did not support impairment as of April 20th 2010; the plaintiff was no longer covered under the policy.

The plaintiff argued in the lawsuit that Dearborn National/Dearborn Group did not did not conduct a full and fair review of the plaintiff’s claim for LTD and was acting in bad faith without considering the medical evidence that supported the plaintiff’s disability status. As a result of Dearborn National/Dearborn Group’s actions, the plaintiff sustained damages to the amount of LTD benefits not paid to her.

Relief sought by the Plaintiff

In the lawsuit, the plaintiff is seeking the following relief through the Court:

Comments (2)

  • Levon, receipt of Social Security disability does not in and of itself guarantee that a private disability carrier has to pay benefits. The bigger concern would be the fact your claim was denied in 2017. If you never appealed the denial of the LTD claim you could be prevented from bringing lawsuit for unpaid benefits, and even if you did appeal the denial you could have a potential Statute of Limitations issues which would time bar you from filing a lawsuit. Please feel free to contact our office if you would like to discuss your situation in greater detail to determine what your options may be.

    Stephen Jessup Nov 17, 2020  #2

  • In 2017 I was denied LTD, after I received Short term disability by Dearborn National. After my open heart surgery I wasn’t able to go back to work, and wasn’t able to go back to work at all, recently was awarded my SSDI. Am I entitled to the time I wasn’t receiving income between 2017-2020?

    Levon E. Nov 17, 2020  #1

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We represent Dearborn Group clients nationwide and we encourage you to contact us for a FREE immediate phone consultation with one of our experienced disability insurance attorneys.

Can you help with a Dearborn Group disability insurance policy?

Our disability insurance lawyers help policy holders seeking short or long term disability insurance benefits from Dearborn Group. We have helped thousands of disability insurance claimants nationwide with monthly disability benefits. With more than 40 years of disability insurance experience we have helped individuals in almost every occupation and we are familiar with the disability income policies offered by Dearborn Group.

How do you help Dearborn Group claimants?

Our lawyers help individuals that have either purchased a Dearborn Group long term disability insurance policy from an insurance company or obtained short or long term disability insurance coverage as a benefit from their employer.

Our experienced lawyers can assist with Dearborn Group:

  • ERISA and Non-ERISA Appeals of Disability Benefit Denials
  • ERISA and Non-ERISA Disability Benefit Lawsuits
  • Applying For Short or Long Term Disability Benefits
  • Daily Handling & Management of Your Disability Claim
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Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

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.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

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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, 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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