California to Investigate 10 Largest Life Insurance Providers

     california to investigate 10 largest life insurance provider

Dave Jones, California’s Insurance Commissioner, has stepped up his effort to investigate top life insurance companies. The top 10 companies in the industry, the commissioner says, have been accused of not properly paying death benefits to family members after policyholders have died, which is illegal.

Companies Accused of Not Paying Benefits

Similar to an investigation against John Hancock Life Insurance Co., Jones wants to take a look at the top 10 life insurance companies under the accusation that these companies are not ensuring the beneficiaries of deceased policyholders get paid.

The fact that these companies allegedly have not been contacting beneficiaries for payout is heightened by the fact that the companies are said to make an active effort to find deceased annuity customers so that they can stop making annuity payments.

In addition to John Hancock, the states facing investigations are MetLife, Prudential, Nationwide, New York Life, Lincoln National, Sun Life Financial, The Hartford, Pacific Life and Aegon Group.

Jones intends to push for so-called market conduct examinations in 35 states, which will probe violations of the law by these companies. If insurers are found guilty of illegal claims-paying practices, they could face fines, restitution and possible license suspensions.

Evidence of Wrong-Doing Already Revealed

Jones says he has already found evidence that MetLife failed to pay money to beneficiaries for two decades and also failed to submit money to the state’s lost or abandoned fund, which was created to ensure no money is wrongfully spent by insurance companies if they are unable to find beneficiaries over a three-year period.

Florida Insurance Commissioner Kevin McCarty said in state hearing that he estimates life insurers may owe beneficiaries and the 50 states more than $1 billion in unclaimed assets. The money is sitting in insurers’ retained asset accounts, which are beneficial to companies as they grow interest on those assets.

Regulators believe the 10 companies noted are trying to hold on to the money to increase their income instead of paying out to the proper parties. Jones and other regulators expect other carriers will be included in the probes in the coming months.

Life Insurance Company Sues Twitter Imposter

                  life Insurance company sues Twitter Imposter


 Coventry First is suing an anonymous critic who posted fake tweets, making the company appear to cheer for the death of policyholders. The Fort Washington, Pa.-based secondary life insurance firm filed a lawsuit on Tuesday in Philadelphia federal court, accusing the critic of unfair competition and trademark infringement.

Anonymous Critic Sends Damaging Tweets

Coventry First, which is considered a leading player in the secondary life insurance market–a market in which investors pay individuals for the right to collect on their policies–says the anonymous critic has set up the Twitter account @coventryfirst and is breaking the law by sending damaging tweets.

The tweets consist of messages like “horrible weekend … no plane crashes” and “natural disasters are good for business!” implying that the company takes pleasure in the deaths of policyholders.

The secondary life insurance (also known as life settlement) market has come under fire in recent years because of the very nature of the market–profiting on the death of another person.

The anonymous critic is jumping in on the debate with its implications that the company is not only profiting on the deaths of the policyholders it buys from, but is actually looking forward to their deaths.

Coventry Seeks Monetary Damages

The life insurer has sought a court order for monetary damages as well as the destruction of the Twitter page. In addition, the company has issued a subpoena asking Twitter to reveal the identity of the account holder.

However, the chances of shutting down the account appear uncertain due to courts’ obligations to balance overall free speech values against the rights of brand owners in trademark law.

In this case, the fact that the account was not used for commercial purposes could hinder the company’s ability to prove an infringement has occurred.

Also, the company would be responsible for proving that the fake account led to confusion in the mind of consumers–that is, consumers assumed the fake account really belonged to the insurer–which could prove difficult.

NY Attorney General Subpoenas 9 Life Insurers

                                   Ny Attorney General subpoenas 9 life insurer

New York Attorney General Eric Schneiderman sent out subpoenas to nine leading life insurance companies last month. A source close to the matter told Reuters on Tuesday that the subpoenas sent addressed the companies’ practices in identifying and paying out policies to deceased customers.

Companies Not Identifying Deceased Policyholders

In a probe similar to that conducted by California Insurance Commissioner Dave Jones in May, Schneiderman is investigating nine major insurance companies that are being accused of not doing enough to locate beneficiaries of policyholders after they’ve died.

His office is seeking information about unclaimed policy proceeds that should have either gone to the beneficiaries or been turned over to the state. The belief is that companies failed to seek beneficiaries on purpose to instead hold the money in retained asset accounts that grow interest over time.

The companies sent subpoenas include AXA SA, Genworth Financial Inc., Manulife Financial Corp., TIAA-CREF, Guardian Life Insurance Co. of America and Massachusetts Mutual Life Insurance Co. Three of the companies included, MetLife Inc., Prudential Financial Inc. and New York Life Insurance Co., have also been subpoenaed by Jones, said the source who wanted to remain anonymous.

Insurers Deny Wrongdoing but Plan to Cooperate

A spokesman for Guardian told Reuters that the company is reviewing the subpoena and intends to “cooperate fully with the Attorney General.”

TIAA-CREF also plans to cooperate but told Reuters, “We believe our processes are compliant with all relevant regulations and serve the best interests of our participants.”

A Genworth spokesman told The Wall Street Journal that it also believes it has “compliant and robust practices to determine when claim payments are due and owing, and to adhere to state unclaimed property requirements and regulations.”

The New York State Insurance Department announced on Tuesday that all life insurers licensed to do business in the state will have to start using an official government death list to identify when policyholders have died. It will also list when death benefits are due to their beneficiaries

Cutting Medicare and Medicaid to Solve Debt Ceiling Issue Will Only Shift Health Care Costs

Health care experts say that the Medicare and Medicaid budget cuts that have been proposed by lawmaker

to resolve the debt ceiling issue would only shift health costs, not eliminate them, according to a new Wall Street Journal story. So far, abut $350 billion in cuts have been proposed to the two programs over the next 10 years, but most think these government savings would actually become new costs for others.

Lawmaker Proposes Medicare and Medicaid Cuts

Lawmakers have been in debates over the past few weeks on how to avoid default after national debt reached its $14.3 trillion ceiling on May 16. Some have proposed raising taxes while others want budget cuts.

This week, House Majority Leader Eric Cantor (R-Va.) presented a list of proposed cuts, which include lower federal payments to hospitals with many poor patients, as well as state Medicaid programs, new patient co-payments for clinical lab work and reduced payments to nursing homes and rural hospitals.

These cuts would be in addition to the $500 billion in cuts to the Medicare program that were already approved to allow the passage of the 2009 health care bill.

Proposed Cuts Will Be Shifted to Other Entities

Both Democratic and Republican health care analysts who have reviewed the cuts agree that they would not really save money. Instead they would shift financial burden to other entities like public hospitals, the states and individuals.

For instance, up to $53 billion in savings over the next 10 years would come from cutting Medigap, which is Medicare supplement insurance. The cuts would result in higher out-of-pocket costs for seniors.

Another proposal has been to save $14 billion to $26 billion by cutting back on reimbursing unpaid debts. While this would save the government money, it would shift the burden to hospitals.

Experts say the better alternative to making these cuts would be to devise a strategy that would restrain costs. For instance, Medicare could offer different tiers of coverage similar to private health insurance. This way, more could be acquired from seniors willing to pay more for higher-quality coverage.

Experts say states, hospitals and individuals are not in a position to burden the shifted costs. They hope lawmakers will work out other ways to resolve the debt issue by the Aug. 2 deadline.

insurance policies

Just because you eat veggies and hit the gym regularly doesn't mean you're immune to an illness, or won't have an accident.

Everyone requires medical help at some point and if you don't have insurance, the resulting bill is going to be painful. Deliver a baby -- without complications --and expect to fork over an average of $10,000, says Matt Tassey, former chairman of the Life and Health Insurance Foundation for Education (LIFE). Get diagnosed with cancer and the expenses can go into the million-dollar range, says Lorne Zalesin, CEO of MyInsuranceExpert.com, which offers free quotes for individual health-insurance policies.

If your employer doesn't offer coverage in a group plan, look into an individual policy. Just be aware that private health insurance typically requires holders to pay higher premiums than they would with a group plan. And coverage may be more limited. To find the right individual plan, visit your state's insurance department web site, which often lists area insurance providers, and web sites like eHealthInsurance.com and MyInsuranceExpert.com for free quotes.

Visit our worksheet for more on choosing the best health plan.

Disability Insurance

Few people like to imagine the worst-case scenario, but Scott Simmonds, a Saco, Maine-based insurance consultant, makes a practice of it. He knows that one major accident could keep a person out of work for months or even years. Even worse: those without disability insurance could face bankruptcy. (Even though Simmonds doesn't sell disability insurance, he still recommends it.)

Disability insurance replaces a portion of up to 60% or 70% of lost income if the policyholder can't work due to an illness or injury. Often times, companies pay for employees disability insurance, or offer it as a voluntary benefit that employees pay for. Individuals can also buy their own policy, although the premiums will cost around 15% more, says Simmonds.

Shop around carefully. These policies are very complicated, can include many caveats, such as what qualifies as a disability, and can be hard to land on your own. Also, costs will vary based on an individual's income and type of coverage. If your employer doesn t offer adequate coverage, contact independent insurance agents who can provide you with a range of policies, says Simmonds.

For more on disability insurance, read our story.

Auto Insurance

What good is a shiny, new sports car if a fender bender will put you in the poor house?

States require different minimum amounts of auto insurance, but it's not enough to take care of things when they really count. Every driver should invest a little extra in comprehensive and collision coverage, especially if their car is less than 10 years old, says Claire Wilkinson, vice president of global issues at the Insurance Information Institute. (For cars older than that, the cost of coverage can be more expensive than the car's value.) Comprehensive coverage protects a car from vandalism, natural disasters like a storm or a tree falling on it, and most other damages -- excluding collisions. That's where collision insurance comes in. It helps pay for repairs to or replacement of a car if it's involved in an accident with another vehicle.

Read our story here for more tips on determining the type of auto insurance you may need.

The Multi Trip Insurance.

It could be quite challenging if you travel annually and have to make insurance plans for every trip. Vacation, retreats, religious or academic are some of the many reasons why people travel. With all the uncertainties lined up, having one insurance package to cater to all your insurance needs will be great.

The Annual Insurance Plan meets all yourinsurance needs adequately. There is an assurance of sufficient cover and all year protection to the insured person within the period. The cover includes accidental health and evacuation in terms of a mishap and medical expenses. Should the insured person lose his life in the process, some money will be due his beneficiaries. The amazing thing is that the plan is yearly and covers all trips within the year.

This Insurance policy is also ideal because it ischeaper than purchasing a new insurance package every time one has to travel. That means, with the one policy purchased will handle all trips for that year. Seeking and buying a fresh insurance policy each time one has to travel could be laborious and cumbersome. The rigours of signing papers, filling forms; it is most convenient to just buy one package for the whole year.

The Annual Holiday Insurance consists of two packages; the Annual Multi Trip Insurance and the Multi TripTravel Insurance. The Annual Multi Trip Insurance presents so many health benefits to people travelling a lot on a yearly basis. The benefits include trip cancellation, luggage loss, medical coverage costs and swift health attention in the case of a crisis. This package can keep the insured person rest assured in the eventuality of any unforeseen mishap. This package takes care of dependants as well.

For those making many trips annually, the Multi Trip Insurance package is best for you. The insured person is guaranteed of coverage through his multi trips. If you need trip cancellation funds, then this is for you. Restrictions are thus; length of trip and having a health insurance back home.

It makes insurance easier and cheaper as one does not have to buy insurance policy per trip. Those who travel annually and professionals now have a better option to buying policies per trip.

Check out more information on annual travel insurance and multi trip travel insurance by visiting the links online.

Individual Health Insurance

The National Health Service (NHS) delivers low-cost or often free medical care to residents in the UK. Eye tests, medical prescriptions, dental treatment and spectacles demand a fee, but youngsters, individuals receiving unemployment positive aspects and pregnant females are exempt from the charges. All UK residents can take advantage of the services of NHS general practitioners and consultation from medical facilities situated in several parts of the country. The rules, procedures and documentation required for access to UK hospitals and general info on healthcare are freely available from the NHS website. Private health cover is necessary for visitors and expatriates.

Individual health insurance is often purchased independently by a single individual, a parent, dependant children or a family. The regulations by which the insurance companies market and sell individual policies varies according to company policy. Individual health insurance can be bought from licensed health insurance salespeople. The alternative is contacting independent brokers who sell insurance plans from many companies and can help you find the most suitable health insurance for yourself. Agents also provide other services like helping clients to process claims. The agent receives a commission from the company on the individual health insurance plan that was sold to you. Hence, you do not have to pay a direct fee to the agent.

Individual health insurance is typically offered by an employer. Options like maternity coverage and substance-abuse treatment may not be included in individual plans. However, if you desire it, you can pay extra for the additional services.

Cost is one problem numerous individual health insurance consumers have an concern with; deductibles (the amount paid just before insurance positive aspects begin) and cost-sharing (the fees paid directly to medical providers at time of service) are normally greater. This will be the reason why advantages in individual policies are usually straightforward.

To buy medical insurance, applicants need to complete a medical questionnaire. In contrast to group health care insurance, a business can decide not to cover people with serious medical conditions like cancer. Insurance companies are permitted to look over a person’s medical history for pre-existing conditions and can choose not to cover specific conditions for an underlined period of time. This is known as ‘exclusionary waiting’.

An applicant must thoroughly read the terms and conditions of any policy he or she is thinking of taking out. It may be the case that money may be saved by taking out a policy for reduced cover if it is decided that it is not needed.

Looking to find the best deal on health insurance quotes, then visit www.healthquotes.co.uk to compare UK health providers such as Simplyhealth