Alabama Disability Insurance Claims

We are a healthcare/professional disability insurance law firm with a national reputation for obtaining successful results for our clients. Our firm has represented physicians, dentists, lawyers, executives and other professionals throughout the country, with the goal of securing and protecting their entitlement to benefits on own-occupation disability insurance policies.

We consult with physicians, dentists, attorneys and business executives filing disability claims throughout Alabama, including the Huntsville, Birmingham, and Montgomery areas. If you’d like to discuss your particular claim with our attorneys, we are happy to set up a free consultation.

Below are some resources for policyholders filing disability insurance claims in Alabama. If you would like to learn more about the disability claim process or insurance bad faith in other states, please visit our homepage.

Does Alabama Recognize Insurance Bad Faith?

Alabama courts have identified two types of bad faith cases—“normal” and “abnormal.”

As explained by the Supreme Court of Alabama, “[i]n the ‘normal’ bad-faith case, the plaintiff must show the absence of any reasonably legitimate or arguable reason for denial of a claim. Singleton v. State Farm Fire & Cas. Co., 928 So. 2d 280, 283 (Ala. 2005) (internal citations omitted).

Conversely, “[i]n the ‘abnormal’ case, bad faith can consist of: 1) intentional or reckless failure to investigate a claim, 2) intentional or reckless failure to properly subject a claim to a cognitive evaluation or review, 3) the manufacture of a debatable reason to deny a claim, or 4) reliance on an ambiguous portion of a policy as a lawful basis for denying a claim.” Id.

The Supreme Court of Alabama has also instructed that “[b]ad faith . . . is not simply bad judgment or negligence. It imports a dishonest purpose and means a breach of known duty, i.e., good faith and fair dealing, through some motive of self-interest or ill will.” Id.

The case excerpts above are not meant to be a comprehensive discussion of each state’s first-party bad faith or disability insurance law. They are merely meant to act as a resource/starting point for those interested in learning more about how insurance bad faith works in their state.

You should always speak with an attorney before making any legal arguments relating to your disability claim.

Notable Alabama Disability Insurance Cases

Lemons v. Principal Life Ins. Co., Case No. 2:18-CV-01040-CLM (N.A. Ala. Oct. 26, 2020) (Alabama OB/GYN became disabled due to a hand tremor; Principal improperly determined his occupation to include being a “consultant” and “counselor”; court determined that under Alabama law and the particular wording in his disability policy, “occupation” meant the OB/GYN’s “primary job or discipline”).

Coleman v. Unum Grp. Corp., 207 F. Supp. 3d 1281 (S.D. Ala. 2016) (Alabama CEO filed for disability benefits due to spinal cord compression, cervical stenosis and later dysautonomia; Unum initially paid his claim and then terminated benefits; the court held in favor of Unum and determined that “regardless of the imperfections of [the insurer’s] investigation, the existence of a debatable reason for denying the claim at the time the claim was denied defeats a bad faith failure to pay the claim”).

Garmon v. Liberty Life Assur. Co. of Bos., 385 F. Supp. 2d 1184 (N.D. Ala. 2004) (Alabama registered nurse filed a disability claim due to fibromyalgia, chronic fatigue, depression and insomnia; her disability company refused to pay because she had been terminated from her job one day prior to her date of disability and also asserted that there was a lack of objective evidence supporting the claim; the court disagreed and reversed the denial, determining that the disability insurance company was being too hyper-technical with the date of disability and also “ignored the progressive nature of the plaintiff’s condition”).

Common Disability Claim Questions

What should I expect when filing a disability claim?

What issues am I most likely to face handling my disability insurance claim alone?

Why are disability insurance claims made by physicians, dentists and other professionals especially targeted for denial or termination?

My disability claim was just denied. What should I do now?

What can my insurance company do when it is investigating my claim?

Do insurance companies conduct surveillance and, if so, when are they watching?

Why does my insurer want to conduct a field interview?

How can I tell if I have a true own-occupation policy?

What are the different types of disability policies?

Alabama Federal District Court Locations

Professional disability claims are often filed in, or removed to, Federal Court given the amounts in controversy. When we work with local counsel to be admitted pro hac vice, we identify the courthouse that is closest to you. Below is a list of the primary Federal Courthouses in Alabama, but there may be satellite courthouses that are closer to where you live.

Birmingham: Hugo L. Black United States Courthouse, 1729 5th Avenue North, Birmingham, AL 35203.

Huntsville: United States District Court, 101 Holmes Avenue, Huntsville, AL 35801.

Who Do Your Disability Insurance Attorneys Represent?

The lists below provide a representative overview of the types of professionals we represent, the disability companies we file claims with and litigate against, and a non-exhaustive list of some of the disabling conditions our prior clients have had.

Professionals

Physician Claims & Resources | Dentist Claims & Resources

Disability Insurance Companies

Disabling Conditions

The information provided above is offered purely for informational purposes. It is not intended to create or promote an attorney-client relationship, and does not constitute and should not be relied upon as legal advice.

Every claim is unique and the discussion above is only a limited summary of information that may be relevant to your claim. An experienced disability insurance attorney can help you assess your particular disability claim, or potential disability claim, and determine what options are available to you.

set up a consultation Return to Top of Page

Scroll to Top