For Immediate Release - April 15, 2008

Division of Insurance Completes Review of Unum Group Disability Claims Payments, Returns $13 Million to Massachusetts Consumers

Multi-state examination leads to improved claims handling, corporate governance structure for nation's leading writer of disability insurance

BOSTON - Tuesday, April 15, 2008 - The Massachusetts Division of Insurance, one of three lead state regulators in a multi-state examination of the Unum Group's handling of disability claims, today announced that the country's leading writer of disability insurance has completed a mandated claims reassessment process and returned more than $13 million to Massachusetts consumers. More than 40% of the reviewed claims were reversed in whole or in part, resulting in a total of $676 million in additional benefits for consumers in every state and the District of Columbia.

"Thousands of consumers who filed worthy disability insurance claims in Massachusetts and across the country will now receive the benefits they rightfully deserve," said Insurance Commissioner Nonnie S. Burnes. "I am pleased that Unum Group has complied with the requirements of the Regulatory Settlement Agreement and has instituted policies and procedures to ensure its claimants are treated fairly going forward."

In November 2004, as a result of the findings of a multi-state examination, the Unum Group entered into Regulatory Settlement Agreements (RSA) with regulators in Massachusetts, Maine, New York, Tennessee and the United States Department of Labor. The RSA required the company to make significant changes in corporate governance, implement revisions to claim procedures and provide for a full re-examination of both reassessed claims and disability insurance claim decisions after the January 2005 effective date of the RSA.

Massachusetts' recently completed examination found that Unum promptly implemented the changes required by the RSA in both governance and claim administration, and now follows practices that will protect disability insurance claimants. Reassessed claims including interest have been paid to all impacted claimants. The full report is available at pdf format of UNUM Claim Handling Practices Exam Report -...