Probes Open in Military Insurance Death- Benefits
29 July 2010 Defense Secretary Robert Gates pledged to help the U.S. Department of Veterans Affairs probe how insurers reap profits from death benefits retained for the families of deceased military personnel.
“I will be very interested in the outcome of the VA investigation,” Gates told a Pentagon press briefing. “We will do everything we can to help.”
Earlier today, New York Attorney General Andrew Cuomo began a fraud probe into the life insurance industry and subpoenaed MetLife Inc. and Prudential Financial Inc. for information about profits on the retained death benefits.
The investigations, along with a review by the New York State Insurance Department, were prompted by a Bloomberg Markets magazine report that more than 100 carriers earn investment income on $28 billion owed to life insurance beneficiaries. New York-based MetLife, the biggest U.S. life insurer, and No. 2 Prudential are among the firms that administer the so-called retained-asset accounts.
“Until today I actually believed that the families of our fallen heroes got a check for the full amount of their benefits,” Gates said. “This came as news to me.” Continued
July 29 (Bloomberg) -- Bloomberg's David Evans talks about New York Attorney General Andrew Cuomo's fraud probe into the life insurance industry. Cuomo's office subpoenaed Prudential Financial Inc. and MetLife Inc. for information about profits on death benefits retained from the families of deceased policyholders including military personnel. Cuomo’s investigation was prompted by a Bloomberg Markets magazine report and follows a review by the New York State Insurance Department. Evans speaks with Margaret Brennan and Scarlet Fu on Bloomberg Television's "InBusiness". (Source: Bloomberg)