25 life insurance companies reached a settlement with 41 states, including California, to properly pay the money it owes to life insurance beneficiaries. Dozens of lawsuits and audits concluded that the insurance companies were not notifying, nor making an attempt to notify, surviving recipients of life insurance policies. The settlement will require the companies to properly pay about $2.4 billion to legitimate death benefit recipients.
According to the California State Controller’s Office, insurance companies would fail to notify beneficiaries and would continue charging premiums against the cash value of the life insurance policy until the benefits were exhausted. The companies were accused of never attempting to notify the designated beneficiaries of the policy payout. Californians can search to see if they were named as beneficiaries on the California State Controller’s Office website here.
Of the $2.4 billion, California recipients are owed $307 million. Consumer Watchdog advises that life insurance policy holders should always tell their beneficiaries that they have been named in an insurance policy so the funds can be collected in a timely manner.
See the news story here.
The Law Offices of Larry H. Parker is a plaintiff’s law firm in Long Beach. We have helped injury victims obtain fair compensation from insurance companies for over 35 years, with more than $2 billion recovered. If you or a loved one has been injured in an accident, call us today at (800) 333-0000 for a free consultation. Please visit our website larryhparker.com for more information. We’ll fight for you!®
