Death Benefit Controversies
In October 2012, Nationwide paid $7.2 Million to resolve a prove of its payouts for death benefits in a probe lead by a multistate task force headed by Florida Insurance Commissioner Kevin McCarty. The task force stated that over $1 billion of death benefits was not paid to consumers by multiple companies, including Nationwide, MetLife, Prudential Financial Inc., and Manulife Financial Corp, because of customers failure to file a claims report. The pact reached with the task force will commit Nationwide and other insurers to compare its records against the Social Security Death Index and conduct a search for beneficiaries. The language in life insurance policies make it clear that it is up to the beneficiaries to notify the insurer, however few companies have fallen back on this argument due to public relations fallout.
Read more about this topic: Nationwide Mutual Insurance Company
Famous quotes containing the words death and/or benefit:
“Surrealism is merely the reflection of the death process. It is one of the manifestations of a life becoming extinct, a virus which quickens the inevitable end.”
—Henry Miller (1891–1980)
“But is an enemy so execrable that tho in captivity his wishes and comforts are to be disregarded and even crossed? I think not. It is for the benefit of mankind to mitigate the horrors of war as much as possible.”
—Thomas Jefferson (1743–1826)