Life Insurance Companies Increasingly Dispute Claims, Deny Benefits To Thousands

[Amerigo Vespucci]

Life Insurance Companies Increasingly Dispute Claims, Deny Benefits To Thousands

http://www.huffingtonpost.com/2010/11/21/life-insurance-companies-_n_786536.html

Los Angeles Times:

More often than not, life insurers make good on policies, paying $38 billion in death benefits on individual policies last year. But what happened to Sheila Weissberger was not unusual. The claims of thousands of beneficiaries are denied or disputed every year -- more than 5,000 last year alone -- many for allegedly flawed applications, a Times review found.

Read the whole story: Los Angeles Times (http://www.latimes.com/news/local/la-me-life-insure-20101121,0,4197678.story)

[GreenPartyVoter]

1. Sounds like they are taking a page from the health insurance racket

[TexasObserver]

2. They make money every time they deny a claim.

The law favors them, when they do, too.

[Odin2005]

3. Health Insurance is like loaning out an umbrella that dissolves in the rain.

SCAM!

[grumgrum]

4. Thank goodness for Reform otherwise Health Insurers would be doing the Same!!

:sarcasm:

[mstinamotorcity]

5. I wonder will

they say that to an employer who has one of their "Dead Peasant Policies" Oh sorry we aren't paying you because the deceased didn't give you permission, which is highly flawed.:sarcasm:

[sarcasmo]

6. This happened to my grandmother back in the 90's. 2 policies and neither would pay out.

[burnsei sensei]

7. Breach of contract laws should go both ways.

Institutions should be just as liable as individuals.
Contracts are not covenants-- the law must make the individual equal to the corporation that would crush him.