A federal lawsuit in Minnesota against ReliaStar and Madison National Life Insurance Co. was recently filed by a Minnesota disability attorney. The Plaintiff, a teacher in the local school district, was covered by a Wisconsin Life’s disability benefit plan which was administered by ReliaStar. The Plaintiff filed a disability lawsuit to recover disability benefits wrongly withheld by ReliaStar.

Case Facts Against ReliaStar

Plaintiff worked as an early childhood teacher for a School District. However, due to medical conditions, Plaintiff asked for a leave of absence as Plaintiff realized that her current physical condition at the time would not allow her to fulfill the requirements needed to adequately fill the position expected of the Plaintiff.

Plaintiff experienced disabling high blood pressure, frequent colds and illnesses, unalleviated stress, respiratory complications, sleeplessness, exhaustion, and accelerated low back pain. The conditions over a 3-year period led to the diagnosis of fibromyalgia.

Plaintiff requested a leave of absence during the fall semester of the 2007-2008 school year, between September 1, 2007 and January 5, 2008, which was granted by the School District. School District assisted Plaintiff in applying for disability benefits for which Plaintiff was eligible for and had paid her portion of the premiums.

ReliaStar Denies Disability Benefits Claim

ReliaStar, despite not evaluating the physical requirements of Plaintiff’s job, denied wage benefits to the Plaintiff. ReliaStar also refused to accept the Plaintiff’s description of her daily activities and the physical requirements of the position.

As a result, Plaintiff has never received any of the benefits of which she should have received under the terms of the Policy. Plaintiff has exhausted all of her contractual and administrative remedies, leading to the filing of this lawsuit.

Minnesota Disability Lawyer Files Lawsuit Against ReliaStar

In the lawsuit, Plaintiff alleges that ReliaStar did not provide the following to the Plaintiff:

  • Wage replacement benefits as defined by the Total Disability and Partial Disability clauses in the Policy
  • Apply objective standards to fairly evaluate Plaintiff’s claim based on the physical demands of the Plaintiff’s job
  • Fairly take into account Plaintiff’s detailed description of the physical requirements of the job

Plaintiff claims that ReliaStar committed the following wrongful acts:

  • Lied about their ability to fairly and accurately evaluate Plaintiff’s claim for wage replacement benefits
  • Failed to provide wage replacement benefits despite the Plaintiff fulfilling all requirements for those benefits under the terms of the Policy
  • Committed great harm and loss to Plaintiff and her family due to not paying out the expected wage replacement benefits that were to be received as defined under the terms of the Policy
  • Converted the premium payments paid by the Plaintiff toward the Policy for their own use
  • Denied benefits in violation of M.S. 72A.20 Subd. 12, Subd. 18, Subd. 38, and M.S. 325D.15

Plaintiff Seeks Following Relief From ReliaStar Lawsuit

Because of ReliaStar’s actions, Plaintiff seeks the following relief from the Court:

  • Payment of all benefits that have accrued since October 1, 2007 according to the terms of the Policy, along with interest and penalties that defendants are liable for
  • Reimbursement for costs, disbursements, and all attorneys’ fees
  • Payment of over $75,000.00 for fraud and the willful and intentional denial of wage replacement benefits
  • Payment of over $75,000.00 for conversion in the acceptance of insurance premiums with the intention of breaching the terms and conditions of the Policy
  • Judgment against ReliaStar for unfair and deceptive practices that violated M.S. 72.20 and M.S. 325D.15
  • Judgment against ReliaStar and Madison National Life Insurance Co. from selling any policy of insurance in the State of Minnesota
  • All other relief that the Court finds to be proper and just