State Suing Life Insurance Companies For Not Paying Beneficiaries


OF THOSE STATES SO KEEP THAT IN MIND. THANK YOU JOHN. GIVE A QUESTION YOU CAN EMAIL IT BY GOING TO WCCO.COM. WE PAY LIFE INSURANCE POLICIES WITH THE EXPECTATION THAT OUR LOVED ONES WILL BENEFIT WHEN WE DIE. SEVERAL COMPANIES HAVE BEEN SUED FOR NOT PAYING BENEFICIARIES TO THE TUNE OF TENS OF MILLIONS OF DOLLARS. MANY HAVE SETTLED THE EVEN MORE COMPANIES ARE PUSHING BACK SAYING THAT THEY SHOULD NOT HAVE TO PAY. JENNIFER MERRILY REPORTS ON HOW THIS HAPPENED AND WHAT YOU CAN DO TO PROTECT YOUR FAMILY. Reporter: RAD HOGANS AND ENJOYED GOING TO GO FOR DAMES — COFER GAMES WITH HIS DAD. Reporter: HE WOULD BRING UP HIS WILL AND INSURANCE PAPERS. AT THE TIME WHEN YOU ARE YOUNGER A LOT OF THAT GOES OVER YOUR HEAD AND YOU THINK IT WILL COME UP LATER. Reporter: IN 2002 WHEN HIS DAD DIED BRIDE WAS THE EXECUTOR AND HANDLED EVERYTHING HE KNEW ABOUT. 10 YEARS WENT BY BEFORE HE LEARNED HIS DAD’S LIFE INSURANCE COMPANY OWED HIM MORE THAN $10,000. IT COULD’VE BEEN A MORE DIRE SITUATION FOR US FINANCIALLY BUT THE WEIGHT WAS OFFPUTTING. THEY BEEN HOLDING ON TO A GOLD MINE OF MONEY THAT BELONGS TO BENEFICIARIES. Reporter: COMMISSIONER MIKE ROTHMAN OF THE MINNESOTA DEPARTMENT OF COMMERCE WAS OUTRAGED TO LEARN THAT INSURANCE COMPANIES KNOWINGLY DID NOT PAY ON POLICIES. IT UNCONSCIONABLE WHEN INSURANCE COMPANY KNOWS OR POLICYHOLDER HAS PASSED AWAY AND THEY HAVE KEPT THE MONEY AND USED IT FOR AN INVESTMENT AND NOT PAID THE BENEFICIARIES THE RIGHTFUL MONEY THAT THEY ARE OWED. IN MANY CASES THE BENEFICIARY DIDN’T KNOW ABOUT THE POLICY. Reporter: THEY NEVER CONTACTED THEM AND ONLY PAID OUT IF THE BENEFICIARY FILED A CLAIM. IT IS UNCLEAR AND NOT THEIR MONEY SO IT’S TANTAMOUNT TO THEFT IN A WAY. THESE ARE THE LARGEST BRAND- NAME NATIONAL INSURANCE COMPANIES THROUGHOUT THE UNITED STATES. Reporter: THE STATE SETTLED WITH METLIFE, JOHN HANCOCK, LINCOLN, TRANSAMERICA, JACKSON NATIONAL, NEW YORK LIFE AND
FULLY OUT. THEY FOUND WELL OVER $200 MILLION OWED TO MINNESOTANS, SO FAR COMPANIES HAVE PAID $143 MILLION TO BENEFICIARIES AND ANOTHER 31 MILLION ENDED UP WITH THE STATE AS UNCLAIMED PROPERTY THAT THEY COULD NOT
REACH. OTHER INSURANCE COMPANIES ARE PUSHING BACK. THEY SAME DESHA SAY PEOPLE NOT MADE CLAIMS. Reporter: THE EXPERIENCE HAS LEFT BRAD THINKING ABOUT HIS OWN POLICIES. I SHOULD MAKE SURE THAT MY ACCOUNTS ARE CLEAR SO THAT MY WIFE KNOWS WHERE MY MONEY IS AND WHAT SHE SHOULD BE ADDRESSING WHEN EVENTUALLY I PASS AWAY. Reporter: ROTHMAN SAYS THAT SHARING INFORMATION IS YOUR BEST DEFENSE. IF YOU EXPECT YOUR INSURANCE COMPANY TO PAY YOUR BENEFICIARIES WHEN YOU DIE, THEY ARE NOT DOING THAT. IF YOU KNOW THEY ARE NOT DOING NOT YOU SHOULD MAKE SURE THAT YOU GET THE INFORMATION TO YOUR FAMILY AND KEEP THE POLICY IN A SAFE PLACE SO THAT IT DOES NOT

13 comments

absolutely despicable………………………….get the RIGHT info on the beneficiary information–contact your agent immediately!

To help summarize, the companies mentioned are: Met Life, John Hancock, Lincoln, Prudential, TransAmerica, AXA, Jackson National, New York Life, and Voya. Minnesota is investigating 7 more companies.

What is needed is legislation, that makes it implied terms in the contract, that the onus is on the Insurance company to not just notify but take reasonable steps to make sure beneficiaries get their money. Including a sanction/ penalty for any non compliance.

My..Car…life..policy..refused..to..pay.claiming.my.wife.was.just..Co-signer…But
when..I.sold..the..car..the..check..was.made..out.in.both.our.Names??

New York Life is taking my family through it right now. I hope all the dead people haunt them all. It's truly unfair and disgusting.

How the fuck is the insurance company supposed to know you've died without a claim? Do they search death certificates?

Imagine the day where HIV/AIDS patients, Cancer, and Diabetic patients gather and join forces to not only end these practices but to demand the cures we all know are already there!

How will the company know they died? My brothers policy is paid up. There are no premiums or correspondence needed. If he died, they wouldn't know. Are they supposed to get a list a daily deaths and see if their customers are on it? That's just weird.

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