February 8, 2001

A federal court jury awarded $7.6 million yesterday to a Novato 
chiropractor who lost her home and went on welfare when her disability 
benefits were cut off in 1999 by the world's largest disability insurer.
Dr. Joan Hangarter, a chiropractor for 20 years, said she has been unable 
to treat patients since 1997 because of repetitive-stress injuries to her arm 
and neck, aggravated by an auto accident. Unum Provident stopped the $8,150-a-
month payments after 1 1/2 years, saying a medical examination it commissioned 
showed Hangarter was not disabled.

But Hangarter's lawyers said the company was trying to save money by 
finding pretexts to lop off expensive claims. After a three-week trial, the U.
S. District Court jury found that the company had denied benefits improperly 
and acted with "oppression, fraud or malice." Jurors awarded Hangarter past 
and future benefits, plus $5 million in punitive damages.
"They were looking for reasons to deny this claim," juror Craig Larsen of 
San Francisco said afterward.
"I don't understand why these people (the insurers) aren't prosecuted," 
Hangarter, 52, told reporters. A single mother of children ages 10 and 12, she 
said she was evicted from her house, lost her car, went on welfare and food 
stamps, and declared bankruptcy when a later business venture failed. She said 
she will continue to apply for welfare benefits while the company appeals.
Chris Collins, UnumProvident's senior vice president and deputy general 
counsel, described Hangarter's injury as "tennis elbow" yesterday -- a 
description her lawyers angrily disputed -- and said she could have returned 
to work, at least part time.
The verdict "shows how difficult it is sometimes for an insurance company 
to get a fair hearing from a jury," he said.
Hangarter bought an occupational insurance policy in 1989 from Paul Revere 
Insurance, which was later acquired by UnumProvident. It promised benefits for 
life if she ever became too disabled to work as a chiropractor, she said.
Her lawyer, Ray Bourhis, linked the cutoff of Hangarter's benefits to a 
1995 memorandum from a claims manager saying the company could save $30 
million to $60 million a year by terminating disability claims.
E-mail Bob Egelko at begelko@sfchronicle.com.

Dr. Hangartteržs e-mail address is: dpn2000@pacbell.net