A disability insurance company's bad faith practices have yielded a $6.2 million verdict to a claimant's estate reports the Rapid City Journal, "Federal Jury Awards Local Woman's Estate $6.2 Million." 

The claimant, a high school Spanish teacher, took a home equity loan and, as a measure of protection, purchased disability insurance.  Her health began to fail, she had to stop working full-time and she was eventually diagnosed with cancer.  When she filed a claim, the insurance company made up a bogus ground that she had filed her claim too late.  She hired a lawyer, who caught them in their lie and they then paid up in part.  The jury awarded $200,000 in compensatory and $6 million in punitive damages.  There was evidence that the insurance company systematically used deceptive practices to deny legitimate claims.  The case is Powell v. CUNA Mutual Insurance Society.
Be the first to comment!
Post a Comment