Life Insurers Skimp on Payouts: States
Dozens of states are investigating the possibility that major insurance companies have been less than conscientious about paying out life insurance benefits for their dead customers. The investigations began when 35 states signed up for an auditing firm’s offer to look for unclaimed life insurance benefits that could be seized by states as abandoned property. But investigators discovered that insurers appeared to be ignoring the deaths of some clients—even as they used those same sources to justify cutting off annuity payments to others, the Wall Street Journal explains.
Insurers aren’t legally required to check and see if policyholders are alive, but Florida and California are questioning the legality of insurers who discover a customer’s death and don’t act on the information. And stirring the pot is yielding results: John Hancock last week became the first insurer to settle with 23 states, setting up a system to monitor policies.
You're in the business of providing insurance for when "people" die...but you don't have a "system" in place to check to see if they're dead?
Second take: WTF, dead people? What about personal responsibility, corpses? Pull yourself up by your half decayed tendons and shoulder the responsibility you have to your family and contact you life insurance company via John Edwards psychic show. Just because you pay a company every month does NOT mean that they should have any responsibility. Where's the fun in that? This is America. The wages of sin is death...and the wages of death are around 10k for burial expenses, FYI.