Adamson v. Unum Life Insurance Co. of America

Adamson v. Unum Life Insurance Company: Court Upholds Insurance Denial

This case involved a dispute over life insurance benefits. An employee at Micron Technology had applied for additional life insurance coverage worth $300,000 through their employer's insurance plan with Unum. When the employee died, their beneficiary tried to collect the extra $300,000 in benefits. However, Unum denied the claim and refused to pay the additional amount.

The beneficiary sued Unum, arguing they should receive the full insurance payout. The case went to federal court, where Unum won at the trial level. The beneficiary appealed to the Tenth Circuit Court of Appeals, but lost again.

The appeals court ruled that Unum was right to deny the extra benefits because the employee had failed to meet two important requirements: they hadn't provided proper medical evidence showing they were insurable for the higher amount, and they hadn't paid the additional premiums needed for the increased coverage.

What this means for workers: When applying for extra life insurance through your employer, make sure you complete all required steps, including medical exams and premium payments. Missing these requirements could leave your beneficiaries without the coverage you intended to provide.