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:
“Monarchs ought to put to death the authors and instigators of war, as their sworn enemies and as dangers to their states.”
—Elizabeth I (1533–1603)
“I have never taken any exercise, except sleeping and resting, and I never intend to take any. Exercise is loathsome. And it cannot be any benefit when you are tired; and I was always tired.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)