MetLife Settles With States for Failure to Pay Life Insurance Benefits

8:35 pm Business Litigation, Estate Planning

california state flag e1335386066467 MetLife Settles With States for Failure to Pay Life Insurance BenefitsMetLife will pay nearly $500 million in unpaid life insurance and annuity benefits to beneficiaries or states acting on their behalf in a settlement announced earlier this week.

A total of 33 states will share in the nearly $500 million settlement; California will receive approximately $40 million on more than 30,000 policies, according to State Controller John Chiang.

MetLife and other national insurers have been accused of failing to make life insurance payments to beneficiaries, even though the company had information from the Social Security Death Master File showing that policyholders had passed away.

MetLife also said that it would match its records against Social Security death files every month, as well as make an effort to contact their oldest policyholders who may not have provided a date of birth or Social Security number when they purchased a policy.  The company estimates that most of the policyholders in this group are over the age of 90.

The MetLife settlement goes into effect once 20 states have signed on.  Chiang made similar settlements with Prudential and John Hancock in 2011 for a combined settlement of $40 million.

Help is available to you by contacting your Southern California financial planning experts today.

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