The US Department of Labor has come to an agreement with Unum Life Insurance Co. to change the company’s practices regarding proof of insurability.

The U.S. Department of Labor has reached a settlement with Unum Life Insurance Co. of America, a Portland-based insurer, regarding their administration of proof of good health requirements for job-based life insurance plans. The department’s Employee Benefits Security Administration (EBSA) conducted an investigation and found that Unum often accepted premiums without verifying if participants were insurable, leading to denied benefits claims after a plan participant’s death. The settlement requires Unum to change their practices and prohibits them from denying benefits solely based on a lack of evidence of insurability. Additionally, Unum must make changes to their delayed effective date of coverage for dependents more transparent to participants and policyholders. The department urges all insurers to examine their practices to ensure they are not engaged in similar conduct. Unum has also agreed to re-process claim denials from certain time periods. This settlement follows similar agreements reached with Prudential Insurance Co. and United of Omaha.  

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