Bad Faith Blog

Summary: Dr. Jonathan Cohan purchased a disability insurance policy from Provident Life and Accident Insurance Company, which was a subsidiary of Unum Group (Unum). The policy was to provide Cohan with replacement income and measured the amount of benefits by the income received from his occupation at the time of disability. When he became disabled in 2011, Cohan made a claim on his policy. Unum initially paid benefits to Cohan, but later terminated his benefits and demanded repayment because Cohan obtained income from sources other than his occupation. Cohan sued Unum for breach of contract and bad faith. Unum moved for summary judgment, which was granted by the United States District Court of Nevada.