Each year in the U.S., thousands of disability insurance claims are denied when people need help the most. There are a number of reasons for claim denials, including insurance companies acting in bad faith. If your disability claim was denied, your rights may depend on several factors: what type of disability plan you have; your policy restrictions and limitations; your required waiting periods; and the filing statue of limitations.
Most individual disability insurance plans fall under state insurance laws. When claims are denied or claim disputes arise, these types of plans offer policy holders more protections that group plans. Many long-term disability plans fall under group plans that are provided by employers for their employees. Employment group plans are regulated by federal laws, rather than state laws, under the Employee Retirement Income Security Act (ERISA) which allows underwriters more freedom to write in provisions that favor the insurance company over the policy holder. If a lawsuit if filed under third party insurance claims Beaverton or, ERISA does not provide any consumer protection for bad faith claims, punitive damages or emotional stress.