The National Consumer Law Center (NCLC) in Boston, which represents clients nationwide with income below the poverty level for their area, has filed an ERISA lawsuit in Boston against insurer/plan administrator Unum for sending checkbooks to life insurance beneficiaries instead of the lump sum payment called for in the policies.
The NCLC has filed a lawsuit against Met Life in New York for the same practice. The organization intends to file suits against other insurance companies to stop all of them from defrauding beneficiaries by keeping their life insurance proceeds under false pretenses and investing that money for their own profits.
The insurance companies tell the beneficiaries that their money is safe in FDIC-protected checking accounts, but they do not fund the accounts until the beneficiary writes a check. The insureres tell the beneficiaries that they can write checks only if they have a financial need of $250.00 or more. If the insurer becomes insolvent, the beneficiaries will lose their life insurance proceeds retained by the insurer and not deposited in FDIC-insured accounts.
Attorneys who represent certain Colonial Pipeline Co. retirees are seeking information from beneficiaries of company-provided life insurance policies, who, after the death of the insured employee or retiree, were provided a checkbook instead of a cash lump sum payment from the insurance company. The most recent life insurance companies used by Colonial are Unum, Transamerican and Hartford. Beneficiaries with information are asked to contact Helen Cleveland at Roberts, Erck & Cleveland, 945 East Paces Ferry Road, Suite 2220 Resurgens Plaza, Atlanta, Georgia 30326-1125, 404-760-2792 direct, 404-233-2404 fax.finsurance fraud,
No comments:
Post a Comment