Kennedy v. Long Term Disability Plan for Employees of Huntington Banc Shares

Kennedy v. Long Term Disability Plan: Court Upholds Insurance Company's Benefits Denial

This case involved an employee named Kennedy who was denied long-term disability benefits by UNUM Life Insurance Company. Kennedy worked for Huntington Bancshares and had paid into a disability insurance plan through his employer. When Kennedy became disabled and filed a claim for benefits, UNUM rejected his application. Kennedy sued, arguing that UNUM had unfairly denied his claim and should face stricter review because the company had a conflict of interest—it both evaluated claims and paid benefits from its own funds.

The Sixth Circuit Court of Appeals ruled against Kennedy and upheld UNUM's denial of benefits. The court rejected Kennedy's argument that the insurance company should face heightened scrutiny due to its dual role. Instead, the court applied the standard "arbitrary and capricious" review, which is more favorable to insurance companies.

This ruling matters for workers because it makes it harder to challenge disability benefit denials. The decision shows that even when insurance companies have potential conflicts of interest, courts may still give them significant deference when reviewing their benefit decisions. Workers should understand that winning disability benefit appeals can be challenging and often requires strong medical evidence and legal representation.