A federal court jury in Phoenix returned unanimous verdicts against Paul Revere Life Insurance Company, Provident Life and Accident Insurance Company and General American Life Insurance Company for their breach of contract and bad faith denial of disability insurance benefits to Dr. Joanne Ceimo. 

At the request of the defendants the period of time covered by the lawsuit was only from February 1995 until June 2000. The jury found that Dr. Ceimo was totally disabled from her occupation as an invasive cardiologist throughout this period and therefore that the defendants should have paid her benefits. 

The jury further found that the defendants' intentionally denied Dr. Ceimo's claim for benefits without a reasonable basis for doing so and that defendants knew that they were acting unreasonably. In finding that defendants acted in bad faith the jury awarded Dr. Ceimo $5,470,000 in damages for mental and emotional distress. 

The jury heard evidence that these insurance companies formulated a plan to deny the disability claims of thousands of policyholders in order to make up for bad business judgments in the 1980's. The evidence at trial indicated that the plan went into effect in 1995, and has been in effect ever since, causing the denial of thousands of valid claims. The jury awarded $79 million in punitive damages to punish the defendants for this conduct. 

Dr. Ceimo and her attorneys said that if the award is upheld, at least 50% will be used to establish a scholarship foundation for students in economic need. "This was never about the money; it was always about stopping these insurance companies from intentionally hurting people," Dr. Ceimo said.