Since the beginning of COVID I’ve noticed several wrong actions often taken by insureds and claimants, that place disability claims in jeopardy. I’m not sure what influence COVID has had on these activities, but claimants are now engaging in what they believe are “right moves” to manage disability claims. Despite my 25+ year efforts to dispel insurance “old wives tales” and disinformation, particularly on the Internet, insureds and claimants often do not listen to good advice, or the people who know.
First, claimants continue to “do research” on the Internet and trust that one person’s disability sad story automatically jumps from the computer screen into their own file. One of the characteristics of disability claims is that all claims are unique to a specific set of circumstances and what one insurance company does to one claim, it clearly does not do to ALL claims.
Using information from the Internet is extremely dangerous unless the persons writing the articles are credible. While I do think its a good idea for insureds to share their experiences, I equally believe it is a really bad move to use someone else’s claims experience to actively manage your own.
One of the Internet cites that claimants need to be careful of is the “Disability Forum” since many of the leaders of that forum also work for the insurance industry, or are agents. When questions are asked, the moderators give half answers, encouraging you to hire them. This cite does not offer sound advice, but insurance industry biased recommendations. I’d be very careful with using information obtained from the Disability Forum.
Many insureds still trust that insurance companies give fair and equitable file reviews and will accept their doctors’ medical reports as poof of claim. THIS IS NOT TRUE. Every insurance company has their own agenda for reviewing claims and most of them have nothing to do with “fair and equitable review.” Once insureds really understand this, strategies can be used to even the playing field. Insureds who insist on trusting insurance companies risk their claims to their own demise.
Insureds who are managing their own claims still provide way too much information, either on the phone, or by writing lengthy narratives. Remember that insurers cannot hold against you what you do not say, and “less is more” in any kind of communication.
I’ve been recommending that all insureds ask to communicate only in writing, but most of my readers don’t listen. Phone conversations have a way of not being documented accurately, but more than that, insureds often take a phone opportunity to try and convince handlers their claims are credible. Again, giving an insurance company too much information is the number one mistake anyone can make when managing a disability claim.
Finally, claimants who misunderstand ERISA use it in their language and communications in ways that are inaccurate and inappropriate. ERISA does not have anything to do with the actual management of claims other than setting timelines for certain actions and defenses. To cite ERISA inappropriately for claims management purposes makes the claimant look foolish and unknowledgeable. ERISA is best cited only by an attorney while in litigation.
Therefore, insureds need to pay attention to what they are doing and saying with respect to their disability claims. The process in not what it seems. Claimants are likely to make mistakes that may not turn out well.
