by InsInvestigator » Thu Oct 21, 2010 08:10 am
Hello everyone, I need the community's help with a case I'm currently working on. At this point, I can't give all the details, but in short; there are a couple of companies out there withholding fees of some sort from life insurance payments made to the families of deceased servicemen killed in Iraq.
I well aware of the fact, that "THEY CAN'T DO THAT" but I've got evidence which shows they have, and are, continuing to do so.
After someone dies, the insurance industry has turned away somewhat, from providing their beneficiaries with a single check, and instead places the funds into an account. The beneficiaries are then given a blank checkbook and told they can write a single check, or number of checks, whenever they'd like, against that account until the money is gone.
If you know of anyone who has received one of these blank checkbooks in the last couple of years, I'd like to chat with them. Their information will be kept confidential and they will not be made part of any lawsuit until they choose to do so.
Thanks for your help
I well aware of the fact, that "THEY CAN'T DO THAT" but I've got evidence which shows they have, and are, continuing to do so.
After someone dies, the insurance industry has turned away somewhat, from providing their beneficiaries with a single check, and instead places the funds into an account. The beneficiaries are then given a blank checkbook and told they can write a single check, or number of checks, whenever they'd like, against that account until the money is gone.
If you know of anyone who has received one of these blank checkbooks in the last couple of years, I'd like to chat with them. Their information will be kept confidential and they will not be made part of any lawsuit until they choose to do so.
Thanks for your help
Posted: Thu Oct 21, 2010 10:01 am Post Subject:
Mark,
I'm realy missing something on your post.
Withholding fees can't be done and that would be a problem. What does that have to do with the checkbook?
The checkbook really seems to be a positive unless you are saying they are being charged some sort of fee.
Posted: Thu Oct 21, 2010 10:50 am Post Subject:
At this point, I really can't go into much detail.
Checking accounts often have fees attached, and in some cases, these fees can be anywhere from 4 - 8%. This isn't necessarily a bad thing - provided, of course, you are made aware of it beforehand.
I appreciate your help
Posted: Thu Oct 21, 2010 04:41 pm Post Subject:
Thanks, Mark. I haven't noticed anything like this. I will pay attention. I don't know how 4-8% can be anything other than a bad thing even if disclosed.
Posted: Thu Oct 21, 2010 07:58 pm Post Subject:
Let's all work together to find beneficiaries that have been paid with a blank checkbook. Especially if they've got "A Piece of the Rock."
Posted: Thu Oct 21, 2010 08:17 pm Post Subject:
I don't know how 4-8% can be anything other than a bad thing even if disclosed.
If the disclosure comes with the checkbook, and not before, that's where the problem is. How can I make a decision that's in my best interest if the insurer has made one of their own that costs me something from day one?
Realistically, banks don't charge us %% for carrying a balance in one of their checking accounts -- but it might be a $15 per month fee. If I have a $100,000 balance, it's rather infinitesimal, but if I only have a $100 balance, then that amounts to a 15% charge, and in another 6 months, I have nothing.
The same sort of thing can happen with those ubiquitous "gift cards". California law prevents charging a monthly "maintenance fee", but many other states cast a blind eye. A person gets a $25 or $50 gift card at Christmas, in 2008, puts it in a drawer and forgets about it. After 12 months with no redemption, the card may start charging as much as $5 per month as a "maintenance fee" -- for what? As a way to burn the liability off its balance sheet, that's what. In 6 months, the card may be worth nothing. That's not what the purchaser intended.
So I can see where Mark is heading on this one. I'll keep my ears up.
Posted: Fri Oct 22, 2010 07:25 pm Post Subject: I got a checkbook
I received a checkbook from Cigna Group Life Insurance, in December 2009 for my mother's Life Insurance Policy. The checkbook is exactly like you described, but I wrote a lump sum in the first check, because i didn't know if i was going to be charged interest or what they do with the money while you hold it in "account" I'd be happy to look through and get all the info and papers i got on it and let you see/use them for whatever you need to??
Posted: Fri Oct 22, 2010 07:31 pm Post Subject:
i didn't know if i was going to be charged interest or what they do with the money while you hold it in "account"
Most insurance companies do not charge any fees to hold the money in such an account. And they do pay about 3% interest on proceeds in the account (you pay income tax on the interest you receive). They will charge $10 or $15 for a new pack of checks requested by the beneficiary.
Posted: Mon Nov 01, 2010 02:44 am Post Subject:
Wait, are we saying there have been fees charges on retained accounts (that's what we are talking about here)?
Posted: Mon Nov 01, 2010 04:51 am Post Subject:
BNTRS: Yes, you are absolutely correct. So far, I've seen these fees range from 6 to 8%.
Posted: Mon Nov 01, 2010 11:21 am Post Subject:
Mark, that sounds like a serious issue unless it is very prominently disclosed AND the beneficiary has an easy way to get the money without paying this.
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