Banker | Own Occupation, CEO | ERISA
CPA | Financial Planner
The precedent-setting Hangarter v. Paul Revere, Unum verdict was unanimously upheld by the Ninth Circuit Court of Appeals and stands as the landmark disability bad faith case in the United States. Due to arm and shoulder injuries Joan became unable to continue her work as a chiropractor and was forced to sell her practice. Paul Revere/Unum terminated her benefits claiming that its “independent” medical examination raised questions about the severity of her injuries and found that in any event she should have been able to continue her work by modifying her duties and taking breaks. The insurer also argued that Joan was, in fact, continuing to perform some chiropractic work, post disability, and that therefore she was not “totally” disabled.
* Case study contents have been modified to conform with confidentiality provisions in settlement agreements with insurers and clients.
Result: Case settled, within three months for $3 Million, including a buy-out of future policy benefits.