In Govrik v. Unum Life Ins. Co. of Am., 702 F.3d 1103 (8th Cir. 2013), the Eighth Circuit held that Unum operated under a structural conflict of interest (as it was both the decision-maker of the claim and the payer of benefits), but it did not abuse its discretion in terminating the insured’s LTD benefits after it discovered that certain profits should not have been included in the calculation of the insured’s pre-disability earnings. In addition, the Court remanded the case to the district court for consideration of Unum’s counterclaim for overpayment of LTD benefits based on a clerical error.
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