Major insurance scandal exposed

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Wed, 25 Jan 2006 20:29:34 -0800 (PST)

Madsen-Major insurance scandal exposed-ANOTHER AMERICAN

INSTITUTION TAKES PLUNGE INTO GREED POOL

 

 

 

 

GIANT UNUMPROVIDENT INSIDER TRADING BRINGING THE HOUSE DOWN BEFORE

CLAIMS AND CRIMINAL CHARGES HIT FAN

 

http://www.waynemadsenreport.com/UNUM.htm

 

Major insurance scandal exposed

 

JaniceBradfordbest.jpg (28111 bytes)

By: John Caylor

 

http://www.insider-magazine.com

January 21, 2006

 

 

 

 

ANOTHER AMERICAN INSTITUTION TAKES PLUNGE INTO GREED POOL

 

According to confidential sources, UnumProvident the nations largest

disability and long term insurer is operating in a state of chaos

while executives struggle to cash in their chips. Insider trading by

the millions, exactly $144 Million according to the United States

Securities and Exchange Commission Insider & Rule 144 transactions

reported period February 2004 through January 04, 2006.

 

 

According to the SEC, UnumProvident Director Hugh O. Maclellan appears

to be leading the way with stock sales from his personal portfolio and

the families religious foundation, the " Maclellan Foundation a prime

stockholder " .

 

 

Insider Magazines in-depth investigation reveals a monster corporation

with a " religious front " to hide away Billions siphoned from investors

and policyholders. The Maclellan Foundation definitely has hooks into

the Bush White House, IRS, federal courts and the U.S. Department of

Labor and it may have received millions from U.S. government sponsored

faith based initiatives explained in their " how to get taxpayer money

Web site " " http://www.maclellan.net " .

 

 

Recent corporate moves suggest the company to be quietly liquidating

after raising additional capital from investors. Some investors have

filed suit for fraud claiming that the company lied to them about

soundness of financial statements and claims payments. After years of

fending off thousands of lawsuits for bad faith and reckless disregard

of medical facts involving denied claims the company recently agreed

to reassess 215,000 claims federal and state regulators claim were

wrongfully denied.

 

The U.S. department of Labor has fined the company $14 Million and

California Insurance Commissioner has added another $8 Million after

refusing to sign a multi-state settlement saying the company was a

criminal corporation and charged them with knowingly violating the

law. See the Commissioners statement about UnumProvident

Click Here for Commissioners Press Release

http://www.insider-magazine.com/CaCommissioner.html

 

 

 

With mandated reassessment of 215,000 claims valued at approximately

$330,000 each, UnumProvident now valued at $57 Billion will not be

able to survive a $71 Billion dollar run on it. The multi-state

settlement agreement reached after an examination by a Boston Law firm

cozy with the company spells out that the claims will be reassessed by

a special unit formulated within UnumProvident.

 

 

But according to confidential employee sources and claimants who have

been through the new loop, business is the same despite the agreement

that calls for favorable reinstatement of claimants already on Social

Security Disability. But the company had provisions written in the

multi-state settlement giving them the option to deny those claims

again based upon what it deems as incompetence of Social Security Awards.

 

 

According to Linda Nee a former UnumProvident manager and whistle

blower, Unumprovident lies to their investors and tells them they pay

98% of all claims when in fact the company is paying only 60% of

claims as a rule. Nee who now operates her own disability consulting

service for ERISA and other claimants says that UnumProvident is

paying those short term claims they must pay for cancer and related

disabilities where claimants have a short life

span. " http://www.disabilityconsutling.net " .

 

 

The company's confidential claims manual states that Doctors and

medical evidence can be ignored when determining disability under

policy provisions and the company's employees will make all such

determinations. See UnumProvident's confidential claims manual...

 

 

 

Click Here for Manual

http://www.insider-magazine.com/Unumprovidentclaimsmanual.pdf

The most they'll pay a claim will be for 24 months, that's the extreme

even though some contracts call for payments to age 65. So far the

company has avoided criminal prosecution and held it a bay, but,

according to insider sources prosecutors in Washington, D.C. are in

producing a fraud case against the company targeting benefits offset

policy provisions.

 

 

In their policies UnumProvident required offsets with Social Security

for long term disability claims. But the company went about it the

wrong way according to sources. A social security offset would be in

the company's best interest, but the word from the top was take

claims to social security early on before real disability was

established and the claims were turned down giving the company a

chance to effectively end claims early and save millions.

 

 

The pending felony charges may come from the fact that UnumProvident

owns Genex Services a claims management company that uses attorneys

and insurance professionals to reduce claims payment and company

liability. Genex has become the market leader for reducing claims

nationally for many corporate and government agencies.

 

 

Several months into the long term disability claims payment process

UnumProvident sends a letter informing claimants that they will soon

reach the end of a 24 month own occupation period and they must seek

social security benefit offsets as required by their policies.

 

 

The company routinely sends out " Power Of Attorney Forms " from

subsidiary Genex Services to handle the case at no cost to the

claimant and tells them they are not required to appear at Social

Security hearings and asks the Power of Attorney forms be promptly

returned. The claimants are never informed that GENEX Services is a

100% owned subsidiary of UnumProvident and they own the lawyers lock

stock and barrel.

 

 

 

Refusal to sign the Power of Attorney Waiver to GENEX has brought

about early termination for an untold number of the 215,000 claimants

due to be reassessed. Insiders claim the apparent " Fox-N-Henhouse "

program led to many denials for disability claims sent over to the

Social Security Administration because they say it is deliberate

criminal fraud that reduced claims payments by hundreds of millions.

 

 

In a July 2005 TAPED interview with Insider-Magazine.com,

UnumProvident Asset Manager AC Glover based in Chattanooga would not

release any figures for claims paid under the multi-State reassessment

and based upon Insider sources NO claims of substance have been paid

to date. These facts were confirmed in late December 2005 by John Kox

the Manager of UnumProvident's new Multi-State Reassessment team hired

under a 2 year contract to evaluate the resubmitted claims. Kox says

that he can't supply figures or statistics on reassessment claims

because the company does not have reports with that information.

 

 

According to the company's own internal Confidential Claims Manual,

Insider-Magazine.com has acquired; UmunProvident has approximately 500

new disability claims per month. Doing the math shows that to be

approximatley 6,000 new claims per year and there are still 215,000

outstanding claims that have been denied according to the company's

own records. Insider sources have told us that many of those were

legitimate active claims which were terminated early due to raids by

employees seeking the companys covented " Hungry Vulture Awards and

bonuses " .

 

 

 

The claims figures raise serious doubt if the company has ever paid

but very few marginal claims since the inception of the Maclellan

" Religious " Foundation in 1945 as an apparent safe haven source to

stash billions away from eyes of the IRS and government regulators.

 

 

Oddly enough the Provident part of the now merged UnumProvident

Insurance giant came about from family founder Thomas Maclellan who

demonstrated faith when he bought half of Provident Life and Accident

Companies, Inc. The company was in it's fifth year of operation and

lacked leadership and organization, but Thomas applied his

administrative skills and calm preserve to manage business affairs in

Chattanooga, while his partner, John McMasters, used his vibrant,

friendly personality on the road selling new policies.

 

 

The teams synergy was beneficial, but it was Provident's consistent

pledge to integrity and honesty that ultimately brought the company

success. In the late 1800's, an insurance company like Provident who

promised to " pay all claims promptly " was extraordinary, especially

because Provident followed through on that promise. Today

UnumProvident provides disability insurance through several subsidiaries:

 

 

 

1. Colonial Life & Accident Insurance Company (all states, except

New York)

2. First Unum Life Insurance Company (in New York only)

3. Provident Life and Accident Insurance Company

4. Provident Life and Casualty Insurance Company (in New York only)

5. The Paul Revere Life Insurance Company

6. Unum Life Insurance Company of America

 

 

FAITH SHATTERED

" bad faith " is the intentional deception, dishonesty, or failure to

meet an obligation or duty.

 

More- http://www.waynemadsenreport.com/UNUM.htm