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Scanlon family files insurance bad faith and R-67 lawsuit against Cigna insurance company for wrongful denial of life insurance benefits for deceased husband and father

Feb 13, 2008 by Mike Nelson

For Immediate release

Scanlon family files insurance bad faith and R-67 lawsuit against Cigna insurance company for wrongful denial of life insurance benefits for deceased husband and father First major case in Washington State to litigate the new Insurance Fair Conduct Act passed into law in 2007 as Referendum 67

Seattle, Wash. (February 13, 2008) – Jodi Scanlon of Vashon Island, Wash. today filed a lawsuit in Federal Court against Cigna Group Insurance claiming that Cigna wrongfully denied $500,000 in accidental death insurance benefits. This is the first major lawsuit filed under the new Insurance Fair Conduct Act which allows individuals denied insurance coverage from their own insurance companies to seek up to treble damages or in this case $1.5 million.

Michael Scanlon died November 1, 2006 as a result of traumatic brain injury resulting from an accidental fall in a South Seattle nursing facility. He left behind his wife of 16 years, Jodi, an employee with King County and their two children, now ages 11 and 13.

“Michael called home every single day. He spoke with the kids on Halloween, but we never heard from him on November 1,” said Mrs. Scanlon. “He had been transferred to Harborview Medical Center and we could not get there in time to see him before he was gone.”

Mr. Scanlon earned a Masters Degree in Urban Planning at the University of Montana. He worked for United Way in downtown Seattle for 10 years, retiring in 1994 as he had been diagnosed with Multiple Sclerosis.

“I couldn’t believe it when Cigna denied his life insurance claim,” said Mrs. Scanlon. “His policy was through my employer, King County. This is the same coverage we have behind all County employees and their families including our police officers.”

The Seattle law firm of Nelson Langer Engle represents the Scanlon family. In the suit, they allege that the autopsy and death certificate clearly state Mr. Scanlon’s death was the result of an accidental fall leading to a traumatic brain injury.

“This is a fraud on Jodi Scanlon and this is a fraud on the taxpayers of King County who pay for the policy,” said Michael E. Nelson. “This is precisely the reason voters in Washington approved Referendum 67 last November by a 15-point margin. The consumer needs protection from big insurance companies who previously were not motivated to do what is right.”

Referendum 67 / Insurance Fair Conduct Act makes it unlawful for insurers to unreasonably deny a claim for coverage or payment of benefits to any “first party claimant,” or to violate insurance fair practices regulations. With court approval, successful claimants would be entitled to up to triple damages, plus litigation costs, and reasonable attorneys fees. The bill does not apply to health plans offered by health carriers.

Nelson Langer Engle attorneys, for more than 30 years, have helped victims who have been seriously injured. They are experts in personal injury and insurance law. The firm filed the first lawsuit in the nation against Farmers Insurance Company complaining that Farmers’ use of “colossus,” a computer program used to evaluate pain and suffering, unfairly devalued injury claims against the company’s own insureds. For more information visit www.nlelaw.com.

Media Contact: Hamilton McCulloh Hadley Green Creates Direct: (206) 957-4260 Cell: (206) 910-9797 E-mail: hamiltonm@hgcreates.com