Insurer Sued For Stopping DI Payments.(UNUMProvident, disability insurance)(Brief Article)(Statistical Data Included)

National Underwriter Life & Health-Financial Services Edition, April, 2001 by Thomas, Trevor

A Cincinnati executive who was disabled with a heart condition is suing UNUMProvident after the insurer declined to continue paying his disability claim, the executive's attorney says.

The insurer's decision has forced the executive, Randy Barlow of Superior Label Systems in Florence, Ky., to take a $52,000 pay cut, says Stacey Graus, a Covington, Ky., attorney representing Barlow. That's because Barlow can no longer do the highly paid job UNUMProvident claims he can perform.

The insurance agent who sold Superior Label the disability policy covering its top executives says he is embarrassed to learn there is a limit to what Barlow can do. Although he can sue UNUMProvident under the Employee Retirement Income Security Act, a federal law, ERISA generally...

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