The $77 million fund has two components. $29 million of the fund is earmarked for the settlement of pending claims, while the remaining $48 million is intended to cover past claims that are being re-evaluated. The settlement agreement resulted from the same type of market conduct exams that led to the Unum reassessment several years. In other words, there is no longer any doubt – CIGNA is as bad as Unum.
I have filed numerous complaints against CIGNA with the New York Insurance Department, and its successor, the Department of Financial Services. I would strongly encourage anyone who has recently had, or is currently experiencing, a problem with a CIGNA disability claim in New York to file a complaint, which can be done online.
If Connecticut, California, Maine, Massachusetts and Pennsylvania insurance regulators can succeed in prosecuting CIGNA for its improper denials and terminations of disability benefits, then New York regulators should be able to do the same. Even better yet, contact your New York State representative to push for legislation that would outlaw “discretionary” authority clauses in disability policies, which is the source for most of CIGNA’s abuse. Other States have already done so. New York’s Insurance Department had issued a rule in the past that banned discretionary clauses, but the Insurance lobby got it repealed.