UnumProvident gets SEC subpoena on reinsurance deals

MarketWatch
May 8, 2006


WASHINGTON (MarketWatch) -- The Securities and Exchange Commission issued UnumProvident Corp. (UNM) a subpoena in late March seeking information about the insurance company's past reinsurance transactions, UnumProvident disclosed Monday.

The subpoena, issued March 29, asked for information about the company's reinsurance transactions and transactions regarding "non-traditional products" entered into after Jan. 1, 2002, UnumProvident said in its quarterly report filed with the SEC.

UnumProvident said it is cooperating fully with the SEC in the investigation. The company didn't provide any additional details in the filing about the subpoena.

Also in Monday's filing, UnumProvident said a New York State court denied class certification to a group alleging that the company and others breached insurance policies by improperly denying or terminating benefits.

The suit, filed in 2004 against UnumProvident and others, concerns policies issued by third-party insurers on whose behalf UnumProvident administers claims, according to the SEC filing. Last month, the New York court denied class certification to the group and dismissed all claims except for an individual contract claim by one plaintiff. UnumProvident said it denies the allegations.

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