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https://nebraskaexaminer.com/2023/1...hange-procedures-pay-life-insurance-benefits/
An investigation by the U.S. Department of Labor found that United often accepted premiums on employee sponsored life insurance plans for years without determining if a proof of good health, or “insurability” requirement, had been satisfied.
Then, when a participant died, United would often deny claims on the grounds that the company never received the participant’s evidence of insurability.
It left beneficiaries — who believed their loved ones had life insurance — with nothing.
“This terrible practice denied grieving families life insurance benefits for which their loved ones had paid, in some cases, for many years,” said U.S. Solicitor of Labor Seema Nanda on Friday.
An investigation by the U.S. Department of Labor found that United often accepted premiums on employee sponsored life insurance plans for years without determining if a proof of good health, or “insurability” requirement, had been satisfied.
Then, when a participant died, United would often deny claims on the grounds that the company never received the participant’s evidence of insurability.
It left beneficiaries — who believed their loved ones had life insurance — with nothing.
“This terrible practice denied grieving families life insurance benefits for which their loved ones had paid, in some cases, for many years,” said U.S. Solicitor of Labor Seema Nanda on Friday.
