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LOS ANGELES (AP) - California insurance regulators said Monday they settled a three-year probe of UnumProvident Corp., ordering the nation's largest disability insurer to pay an $8 million fine, reconsider thousands of claims and change the way it handles future claims.
The settlement with the Chattanooga, Tenn.-based insurer follows a review of 1,000 claims by policyholders in the state, which led regulators to find the insurer was "systematically" finding ways to get out of paying on disability claims.
"UnumProvident is an outlaw company," Insurance Commissioner John Garamendi said during a news conference here. "It's a company that has a corporate policy established at the highest level to systematically deny legitimate claims."
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