http://www.bloomberg.com/news/2010-07-28/fallen-soldiers-families-denied-cash-payout-as-life-insurers-boost-profit.html
Fallen Soldiers’ Families Denied Cash as Insurers Profit
By David Evans – Jul 28, 2010 10:00 AM EST
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Lohman, a public health nurse who helps special-needs children, says she had always believed that her son’s life insurance funds were in a bank insured by the FDIC. That money — like $28 billion in 1 million death-benefit accounts managed by insurers — wasn’t actually sitting in a bank.
It was being held in Prudential’s general corporate account, earning investment income for the insurer. Prudential paid survivors like Lohman 1 percent interest in 2008 on their Alliance Accounts, while it earned a 4.8 percent return on its corporate funds, according to regulatory filings.
“I’m shocked,” says Lohman, breaking into tears as she learns how the Alliance Account works. “It’s a betrayal. It saddens me as an American that a company would stoop so low as to make a profit on the death of a soldier. Is there anything lower than that?”
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This is outrageous.
While it may be important to protect the grieving families from blowing their money all at once, screwing them is unacceptable.
Where’s the VA, DOD, the politicians and bureaucrats?
Where’s the VFW and American Legion?
If I was KING, (and I’m not; nor do I want to be), I’d require that the insurance company open 100k$ FDIC insured accounts for the beneficiaries.
Fraud is force. Theft is theft. Stealing form widows and orphans is really low.
A plague on all their houses. The karmic wheel should roll their way. May their “lawn” be full of crabs.
What’s the one about wildebeests and elderberry?
Argh!
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Posted by reinkefj 
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