Business Services Industry
UnumProvident pact alters 'total disability'.(News)
Business Insurance, October, 2005 by Ceniceros, Roberto
Byline: ROBERTO CENICEROS SACRAMENTO, Calif.-California's recent settlement with disability insurer UnumProvident Corp. over its claims-handling practices could hinder employers' efforts to make use of modified-duty programs and may raise rates for the coverage, some observers contend. Of particular concern, they say, is a new definition of "total disability'' that UnumProvident has agreed to use in its policies-and the California Department of Insurance's stated plan to require all disability insurers in the state to adopt the same language.
Others, though-including the Insurance Department-disagree that the settlement will pose significant problems for California employers. The department's settlement with the Chattanooga, Tenn.-based insurer stems...
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