Metlife stopped selling individual disability insurance last year, but kept all of its policies and continues to administer them and manage the claims. In insurance company lingo, this block of policies is in “runoff,” meaning that Metlife is not actively selling policies, and is winding down and closing out what it has already sold.
This is a situation typical in the insurance industry, where a company has a block of business that is no longer producing fresh revenue (other than the premiums from paying policyholders that have already purchased policies). Financial modeling leads to increased claim scrutiny, which results in more claim denials and terminations.
If you own a Metlife disability policy and are submitting a claim or have an ongoing claim, you have to have a heightened awareness that getting approved or continuing to be paid will be harder.
Some of the increased claims activity that you can expect to see with Metlife is going to be a greater frequency and quantity of information requests, as well as more independent medical examinations (IMEs). In addition, expect that you will be surveilled and have your personal activities scrutinized, especially on, social media.
You really need to be on the lookout for this increased claims activity if you have a policy with Metlife because it is not looking to process its ongoing disability claims as ordinary claims activity; this is a block of policies that it wants to close out.
If you are about to submit a claim to Metlife, or you have a claim with Metlife and the scrutiny is increasing, feel free to contact my office to discuss the ways you can best protect your ability to receive and keep your long-term disability benefits.
Please contact us with any questions or comments.
Evan S. Schwartz
Founder of Schwartz, Conroy & Hack