A New York and New Jersey Lawyer Who Represents Policyholders and Beneficiaries in Life Insurance Denial Cases

The New York Times reports that MetLife, the largest life insurance company in America, is now the third major insurer to settle claims that it failed to properly track the deaths of its insureds, keeping millions in premiums for its own financial gain.

MetLife has agreed to pay a number of states a total amount of $40 million, without formally admitting any wrongdoing.

The settlement is the culmination of an effort by a majority of states to pressure life insurance companies to take steps to pay unclaimed life insurance benefits to beneficiaries. Insurers have been vigorously criticized for having utilized social security death records to stop annuity and retirement benefits for deceased individuals, but not using those same records to determine if they held unclaimed life insurance policies. Meanwhile, the companies either retained the premiums received as pure profit, or retained the money so that it could earn investment income.

New York officials say that under the recent push, it has recovered $272 million for life insurance beneficiaries.

Under the settlement, policy benefits that are still not matched to beneficiaries are to be paid to state unclaimed property funds. Two other life insurance companies, Prudential and John Hancock, have already reached settlements with state insurance regulators.

The settlement is a positive development, although the fine agreed to by MetLife is only a small percentage of the total life insurance benefits it has withheld over the years.

 

One Response to “MetLife Settles With Regulators For Failure to Pay Life Insurance Claims”

  1. Life insurance benefits should be given to the due beneficiaries. For sure, so much effort comes with the investment so there should be no room given for chances of denied life insurance to take place.

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