State Ex Rel. Nee v. Unumprovident Corp.

Linda Nee and John Metz, acting on behalf of plaintiff, the State of California, appeal the dismissal of the complaint brought under Insurance Code section 1871.7 following defendant Unumprovident Corporation’s successful demurrer to this qui tarn action. The trial court ruled that the statutes upon which plaintiff’s case was brought do not apply to the defendant’s claims handling practices. We agree, and so affirm the trial court.

PROCEDURAL HISTORY

This is a qui tarn action brought under section 1871.7 on behalf of the State of California. The complaint alleged that defendant Unumprovident Corporation has victimized “the general public and/or policyholders and/or potential policyholders and/or government regulators and/or investors” by “making statements . . . containing false or misleading information” in the marketing and sale of disability insurance policies, and in connection with claims for payment or other benefits pursuant to those insurance policies, all in violation of the provisions of section 1871.7. Pursuant to section 1871.7, subdivision (e), plaintiffs requested civil penalties, temporary injunctive relief, and other equitable relief.

On defendant’s…