Alabama Cancer Policy Fraud: Alabama Life Insurance Company
A class action lawsuit has been filed in South Carolina Federal Court on behalf of all people who have ever purchased a cancer policy from the Life Insurance Company of Alabama.
These polices, which have been sold for more than twenty years, were marketed as a type of "supplemental insurance." Purchasers of these policies were told that their normal health insurance (or Medicare and Medicaid) would not reduce the amount paid to the purchaser but rather the money would be paid directly to them. When bills were submitted to Life Insurance Company of Alabama, they would demand to see how much their health insurance paid before paying any amount on the claim. This is not required under the policy and is a violation of the contract.
These purchasers were also told that they would be paid the "actual value" of the covered charges for their cancer treatment. Pursuant to the policy the Life Insurance Company of Alabama would pay the full value of the "usual and customary" charges for the particular treatment they received. However, when bills were submitted to the insurance company, they would only pay a reduced amount. They claimed that the client was not liable to pay the full amount to the healthcare provider and thus would reduce the amount they paid to the purchaser of the cancer policy. This reduction in reimbursement is a clear violation of the plain meaning of the language in the policy.
If you have ever purchased a cancer policy from the Life Insurance Company of Alabama at anytime in the past, you may have legal rights resulting from these improper actions. Even if you have never filed a claim for reimbursement of cancer treatment, you may be entitled to compensation for your loss due to the Life Insurance Company of Alabama's actions. Call Hill Boren today for a free evaluation of your case.