The plaintiff sued his disability insurer for unpaid benefits under a policy that provided two years of benefits for inability to perform his own occupation and thereafter benefits if unable to work at any occupation reasonably suited by education, training, or experience.
The insurer terminated benefits after surveillance suggested the plaintiff could perform light work and argued he could pursue supervisory or alternative occupations.
The court found that the plaintiff’s physical injuries, chronic pain, limited education, and cognitive limitations rendered him incapable of performing any suitable alternative occupation.
Surveillance showing brief periods of activity did not establish an ability to work competitively or continuously.
The insurer’s denial of benefits and adversarial claims handling constituted bad faith, warranting aggravated and punitive damages.
