The insurance company concluded to decline this client coverage due to two facts – there was a pending lawsuit and a pending claim. Although the lawsuit was resolved shortly after this decision was made, the carrier still could not consider the client for coverage until the pending claim is fully resolved.
Per discussion with the underwriter, the main concern within the Motor Vehicle Reports are the underlying complications stemming from any pending claims; which could trigger a lawsuit resulting in a multimillion-dollar judgment. The worry, insomnia, difficulty in concentration, decreased self-confidence, depression, anxiety, risk of bankruptcy, substance abuse and other psych disorders could alter your work ethic and ability to perform in your demanding specialty. The emotional burden and stress of a lawsuit could very likely result in a disability, especially for physicians, preventing you from performing your specialty.
The underwriters specifically stated that they would be willing to reconsider this client for disability insurance with proof that the claims were fully resolved.
