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:
“if thou slip thy troth and do not come at all.
As minutes in the clock do strike so call for death I shall:
To please both thy false heart, and rid myself from woe,
That rather had to die in troth than live forsaken so.”
—Unknown. The Lady Prayeth the Return of Her Lover Abiding on the Seas (l. 19–22)
“It is one of the consolations of philosophy that the benefit of showing how to dispense with a concept does not hinge on dispensing with it.”
—Willard Van Orman Quine (b. 1908)