US Department of Labor Reaches Settlement with Lincoln Ntional Life Insurance Co.

The settlement forbids Lincoln from denying a beneficiary’s claim based on the lack of evidence of insurability if premiums have been received for three months or more. 

The settlement follows an investigation by the department’s Employee Benefits Security Administration that determined Lincoln denied life insurance to participants’ beneficiaries after accepting premiums for months or years without obtaining evidence of insurability from participants. When beneficiaries filed numerous claims after plan participants’ deaths, Lincoln denied these claims based on the participant’s failure to provide evidence of insurability, leaving beneficiaries without insurance benefits for which their loved one had paid. 

The settlement also requires that Lincoln may only request evidence of insurability from existing participants within the first year of them paying premiums. Lincoln cannot consider a participant’s health condition if it arose after the date of Lincoln’s first receipt of the participant’s premium payment. These requirements apply to Lincoln National Life Insurance Co. as well as its parent company, Lincoln National Corp. of Radnor and Lincoln Life & Annuity Co. of New York, another subsidiary of Lincoln National Corp. 

Lincoln has advised the department that the company voluntarily reprocessed claims dating back to March 2018 to provide benefits for claims denied based solely on a participant’s failure to provide evidence of insurability. 

This settlement follows similar agreements the department reached in September 2023 with United of Omaha Life Insurance Co., Prudential Insurance Co. in April 2023 and Unum Life Insurance Co. of America in May 2024.