Even though companies offer their employees long-term disability insurance, the disability application process is often more difficult than one would expect. It isn’t as simple as just taking out the policies and taking advantage of the benefits when you need them. Quite often employees are forced to enlist the services of a disability attorney in order to collect money that is justly theirs, and for those who have no other source of income it can be a tedious and difficult process.

Case 1: Bronia Gancman vs. Standard Life Insurance – Disability Benefits Denied Due to Pre-Existing Condition

On June 23, 2009 Standard Insurance Company issued an individual disability insurance policy to plaintiff, a resident of the state of California, county of Los Angeles. Six months after the policy commenced the plaintiff filed a claim for disability based on a diagnosis of cervical stenosis. This condition was unknown to the plaintiff or her physician at the time she took out the policy, and she completed the 90 day waiting period becoming entitled to benefits around January 4, 2010. Plaintiff continued paying the premiums for another nine months while Standard investigated plaintiff’s medical history. Approximately October 15, 2010 plaintiff received notice from Standard Insurance Company that they were rescinding her policy, denying her claim for disability benefits and returning the premiums she had paid.

Terms of the Lawsuit Against Standard Insurance

Because of the actions of the defendant, the plaintiff has incurred substantial economic losses and is asking the court to award a judgment for Breach of Contract with the following provisions:

  • Compensation for general, special and incidental damages
  • Pre and post judgment interest
  • General and special damages to be determined by the court for breach of implied covenant of good faith and fair dealing
  • Punitive and exemplary damages
  • Attorneys fees and court costs
  • Any other monetary compensation the court feels appropriate

Case 2: Esther Griffin vs. Standard Insurance Company-Long Term Disability Benefits Denied Despite Approval of Disability Benefits by Social Security Disability Administration

The plaintiff was employed by the University of Alabama as a registered nurse and was provided with long-term disability benefits under a welfare benefit plan (ERISA) funded by The Standard. Plaintiff ceased working on February 13, 2008 because of traumatic and degenerative injuries. She originally submitted her disability application and received short-term disability benefits. She later submitted a long term disability application which was approved. Shortly after approval, the long term disability benefits were denied on September 23, 2008. Plaintiff was given 180 days to appeal the decision. The basis of the denial was that the plaintiff was unable to perform her regular job as a nurse.

On December 1, 2008 the plaintiff exercised her right to an administrative review of her case and also provided documentation from the Social Security Administration as proof of her total disability. On October 16, 2009 defendant notified plaintiff that they were upholding their original denial of benefits and that she had exhausted her administrative appeal options.

Terms of the Lawsuit

Because the plaintiff was wrongfully denied disability benefits, she hired an Alabama disability attorney. Her lawsuit was filed in the United States District Court for the Northern District of Alabama, Southern Division. The plaintiff is asking the court for the following relief:

  • Payment of all past, present and future short-term and long-term disability payments plus interest under the terms of the benefit Plan
  • Payment of reasonable court costs and attorney’s fees and any other expenses the plaintiff incurred because of the defendant’s refusal to make payments under the terms of her former employer’s short-term and long-term disability policies
  • Any other amounts the court may feel justified in awarding in this case.