MetLife Pays $500 Million To Settle Probe Into Unpaid Claims For Dead Policy Holders

April 23 (Reuters) - MetLife Inc, the largest life insurer in the United States, will pay $500 million to settle a multi-state investigation into claims payment practices, the office of California's state controller said on Monday.

The investigation related to the use of the Social Security "Death Master" file, which lists those who have recently died. A number of states have accused insurers of using the list to stop making annuity payments to dead customers, but at the same time not using the list to check whether any life insurance policy holders had passed away.

Comments

[dwill123]

08:45 AM on 04/24/2012

Nice cover picture of the former PanAm Building in NYC.

http://conservativedailynews.com/wp-content/uploads/2010/10/PanAmBuilding.gif

[nirek]

07:30 AM on 04/24/2012

They should have to pay out on the policies.

[Hoosierbrad]

08:32 AM on 04/24/2012

They still have to, but many policies are never closed, they get lost, there may be no surviving beneficiaries, etc. This is to ensure that the monies get paid to the State of last known address (in their unclaimed money fund), so that claimants may come forward at a later time to get their money.

[gtposse]

07:03 AM on 04/24/2012

This is why these corporate cons don't want any regulations nor oversight. Capitalism is one of the more morally bankrupt and corrupt system ever introduced to human kind.

[Phed Up]

06:28 AM on 04/24/2012

Snoopy didn't pay up?

[Captain Hindsight]

11:52 AM on 04/24/2012

Lucy moved the football.

[1differentdrummer]

06:28 AM on 04/24/2012

Don't buy from them.

[Peter Combs]

06:21 AM on 04/24/2012

THeir own actuarys should have spotted the issue and known about it.

The Law of Large Numbers would have shown that MET Life Customers were statistically living too long..they sure notice it quickly enough if an odd number of death claims appear.

[mgrant33301]

06:17 AM on 04/24/2012

as usual, they got away with a crime and the HUMANS who consciously decided to defraud DO NOT go to jail. corporations are our friends, as mitt says.

[Shockedbyhalftruths]

07:51 AM on 04/24/2012

What's the crime? Name the law they broke. I'm not saying what they did was ethically just, but I fail to see what law you think they broke.

[UncleDale]

08:19 AM on 04/24/2012

Fraud...defrauding policy holders and/or their beneficiaries... ;You think they would pay that huge amount of money out if they had not been caught red handed breaking multiple laws in multiple states?

[Captain Hindsight]

11:57 AM on 04/24/2012

Theft by unlawful taking.
Theft by deception.
Conspiracy to commit fraud.
Breach of contract
etc, etc,

[knute9]

06:03 AM on 04/24/2012

The fact is 99% of the time if someone is guilty of stealing $100,000 they are going to prison. But if you steal $438 million our government gives a fine.

[WhatDaBleep]

05:52 AM on 04/24/2012

And this is probably 1/50th of those claims too!

[SitandStay]

05:48 AM on 04/24/2012

This is what less government, deregulation and an ex-President that totally ignored corruption because he WAS.

The Bush Family: An American Tragedy
Jamie Stiehm
April 9, 2012

http://www.usnews.com/opinion/blogs/Jamie-Stiehm/2012/04/09/the-bush-family-an-american-tragedy_print.html

[ProudConservative]

07:51 AM on 04/24/2012

Do you have evidence that it wasn't going on during the Clinton years?

[SitandStay]

08:05 PM on 04/24/2012

I'm sure, if the Republicans could have come up with something better than a little blue dress worn by a consenting adult.....they would have.....as they are always attempting subterfuges.
Def subterfuge: any plan of action used to hide or evade something.

[bonatay]

04:22 PM on 04/27/2012

Yes! Ken Starr

[parlimentMike]

04:54 AM on 04/24/2012

Who knew that Snoopy Blimp was all hot air.

[mutopis]

04:40 AM on 04/24/2012

Dishonest company stealing from the dead and grieving families? I am shocked!... no really, I am shocked... not.

[Sheldon archer]

04:12 AM on 04/24/2012

Lucky for Americans that these dishonest corporations do not have any control over the decisions of the government....tongue is stuck in cheek.

[den1953]

08:40 AM on 04/24/2012

Good thing ALEC doesn't write any of those bills that affect those large corporate alliances either "wink wink".................

[glomtt]

04:05 AM on 04/24/2012

If you think you may have a claim, I advise you to go to their website and see. I noticed there was no information in this story advising readers on what to do if you think you have a claim on an insurance policy, so I will. Go to this link http://www.metlife.com Click On Policy Finder. You might get lucky like I did. It helps if you have a death certificate to enter all the information. Good Luck Friends!

[HellBank]

04:01 AM on 04/24/2012

Big corps can sure find the next of kin pretty darn quick when the estate owes money.

[Shockedbyhalftruths]

07:55 AM on 04/24/2012

Yup - the same way individuals work hard to get money but don't work so hard to find out who they owe money to. How many hours a day do you spend proactively looking for people to pay money to? Not paying an invoiced bill, but proactive payment.

[HellBank]

07:57 AM on 04/24/2012

If it were my job and responsibility, I would work pretty hard.