Are Life Insurance Companies Denying Millions in Interest Payments
Earlier this month a class action lawsuit was filed by two military families against the nation's second largest life insurer, Prudential. The suit alleges that the company profited from the death of two veterans, when they failed to pay appropriate interest on the balance of unpaid life insurance benefits. Prudential is accused of paying families only 1% interest on unpaid benefits, while the company recouped 5.7% on funds deposited in a corporate account. According to some industry analysts, it is a practice that may have earned Prudential as much as $100 million in 2009. The Department of Veteran Affairs has launched an investigation, but this is an issue that may have far wider consequences, given that Prudential provides similar policies to millions of other federal employees. According to the American Council of Life Insurers, the industry holds in excess of $4.6 trillion in assets, a large proportion of which may not be segregated in secure bank accounts backed by FDIC insurance. While Prudential denies any wrong doing, the uncovering of this practice has shocked millions of consumers. If you have concerns regarding a life insurance policy or any other type of insurance claim, Burg Simpson can help. Call our experienced insurance law attorneys toll free on 1.888.895.2080
