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UNUM Found Guilty of Fraud

October 24, 2008 by Jonathan Stein

This just came across my desk:

“A Boston jury has found that Unum(NYSE: UNM), the nation’s largest disability provider, defrauded the UnitedStates by forcing its customers to submit false claims for disabilitybenefits to the Social Security Administration (SSA), when Unum knew that they were not eligible for government benefits.

By engaging in this fraudulent conduct, Unum imposed substantial burdens on an already overwhelmed Social Security program and caused the taxpayers of the United States to spend money to process and deny these false claims.”

It has been common knowledge in the insurance industry, and the plaintiff’s bar, that UNUM wasn’t always playing by the rules. But this takes it to a new level. If you have a UNUM policy, you may want to look somewhere else for disability coverage.

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