The Troubling History of Major Insurance Carriers Denying Long-Term Disability Claims
If you’ve ever filed a long-term disability (LTD) claim, you know how stressful and time-sensitive the process can be. Unfortunately, even when backed by legitimate medical evidence, many disability claims are denied—often by some of the largest insurance carriers in the country. At Raval Trial Law, we’ve represented countless clients who have been unfairly denied the benefits they are entitled to. The troubling pattern of bad faith practices and aggressive denials by insurance companies is not new—it’s a systemic issue that continues to affect hardworking individuals when they are most vulnerable.
The Business Model Behind Disability Denials
Long-term disability insurance is intended to provide financial protection when someone becomes unable to work due to a serious illness or injury. However, insurance companies are for-profit businesses with a strong incentive to limit payouts. Every claim they deny protects their bottom line. Many major carriers employ internal policies and cost-saving tactics that directly or indirectly lead to the denial of valid claims.
In fact, several carriers have faced lawsuits, fines, and public scrutiny for their aggressive denial practices. Let’s take a closer look at some of the most notable offenders.
Unum: A Legacy of Denial
Unum, one of the largest providers of disability insurance in the United States, has a long and well-documented history of improperly denying long-term disability claims.
In 2004, Unum was the subject of a multistate investigation led by insurance commissioners from over 40 states. The probe revealed that Unum had systematically denied legitimate claims, prioritized cost-cutting over fair evaluations, and pressured claims adjusters to meet internal denial quotas.
As a result, Unum agreed to a regulatory settlement that required them to reassess over 200,000 previously denied claims and pay a $15 million fine. Despite these measures, Unum has continued to face criticism and litigation for its claim practices.
Cigna: Repeated Violations and Settlements
Cigna is another major insurance carrier with a controversial history of disability claim denials. In 2013, Cigna agreed to a settlement with insurance regulators in California, Connecticut, Massachusetts, Maine, and Pennsylvania after a multistate examination found widespread mishandling of long-term disability claims.
Regulators accused Cigna of failing to consider all available medical evidence, improperly relying on in-house medical reviewers, and denying claims without adequate justification. The company agreed to review past denials and make changes to its claim handling procedures. However, complaints have persisted.
At Raval Trial Law, we continue to see clients who’ve had their claims denied by Cigna despite thorough documentation from treating physicians, multiple diagnoses, and functional impairments that clearly meet the policy’s definition of disability.
New York Life, Prudential, and Others: A Common Trend
Other major carriers such as New York Life, Prudential, and The Hartford have also come under fire for their disability claim practices. These companies have been accused of:
- Using biased third-party medical reviewers
- Ignoring the opinions of treating physicians
- Conducting “independent” medical exams with contracted doctors who often produce denial-friendly reports
- Claiming insufficient objective evidence, even when a disability (like chronic pain or fibromyalgia) is notoriously hard to measure with imaging or lab tests
- Cutting off benefits after short approval periods, citing “improvement” that isn’t supported by medical records
This behavior reflects a larger pattern in the industry: delay, deny, and hope the claimant gives up or settles for less than they deserve.
The Impact on Claimants
For individuals suffering from serious medical conditions—such as multiple sclerosis, traumatic brain injury, autoimmune disorders, or degenerative disc disease—a denied LTD claim can be financially and emotionally devastating. Most policyholders have paid into their disability plan for years through their employer or as private policyholders. When they can no longer work, they expect that coverage to be there. Unfortunately, what they often encounter is a maze of bureaucracy, requests for excessive documentation, and denials that ignore the reality of their condition.
The appeal process can take months, and lawsuits can drag on for years. Meanwhile, medical bills mount, families struggle, and health deteriorates due to the added stress.
How Raval Trial Law Can Help
At Raval Trial Law, we specialize in holding insurance companies accountable when they fail to honor their commitments. We understand the tactics insurers use to deny legitimate claims and have a proven track record of challenging these denials effectively—whether through appeal, negotiation, or litigation.
Here’s what sets our firm apart:
- Strategic Litigation: We don’t just file lawsuits—we build powerful, evidence-backed cases that highlight insurer misconduct and bad faith practices.
- Medical Evidence: We work closely with your treating physicians and medical experts to present clear, credible proof of your disability.
- Insurance Knowledge: We understand the complex language and loopholes in LTD policies and use that insight to your advantage.
- Trial-Ready: If insurance companies refuse to act fairly, we’re ready to take them to court and fight for the benefits you’re owed.
What You Should Do If Your Claim Is Denied
If your long-term disability claim has been denied:
- Don’t give up. Many denials can be successfully appealed or overturned with proper legal help.
- Act quickly. There are strict deadlines for filing appeals and lawsuits under ERISA and private policies.
- Keep all documentation. Letters, emails, medical records, and communication logs can all be used to build your case.
- Contact an experienced attorney. A legal team like Raval Trial Law can evaluate your denial and guide you through the next steps. The earlier you contact us, the sooner we can help.
Final Thoughts
Insurance companies have a long history of putting profits over people, and long-term disability denials are a prime example. If you’ve been wrongfully denied, you are not alone—and you don’t have to face the system by yourself.
Contact Raval Trial Law today for a free consultation. Let us help you stand up to the insurance company and fight for the benefits you rightfully deserve.
At Raval Trial Law, we understand the complexities of insurance litigation and the profound impact it can have on individuals facing serious health challenges. If you’re dealing with insurance denials or disputes related to medical treatments, we are here to help. We are committed to advocating for patients’ rights and ensuring that insurance companies fulfill their obligations. Contact us to learn more about how we can assist you in navigating these challenging situations
