MetLife Inc., one of the largest life insurance policy providers in the United States, has agreed to pay close to $500 million to bring a closure to the probe that was initiated by close to 30 states across the country which claimed that this company did not extend certain policy benefits to all its policy holders.
Metlife is currently the largest life insurance provider in the country. The company has agreed to pay close to $188 million in 2012, which is fraction of the $478 million which is the total amount that has to be paid out. The state regulators conducted an extensive investigation into the use of the ‘death file’ of Social Security Administration that was used by Metlife. This file holds the details of all those who have died.
According to John Chiang, a California controller, last year’s join investigate hearing revealed that Metlife did have enough information about its policy holders who had died. Despite this knowledge, the company failed to pay out the amount due to the beneficiaries. Chiang said that this settlement makes it clear that if the life insurance providers do not live up to the terms and conditions of their policies, then the state will take relevant action such as filing lawsuits to ensure policy holders are given their dues.
Metlife, on its part, has maintained that it has been paying nearly 99 percent of claims. The company also maintains that they have been working in close liaison with the state regulators to make sure everyone is paid their dues. A statement issued by the company states that they have been liaising with the regulators to come with certain best practices in the industry. The statement also said that the company is satisfied that the new processes that are being developed will offer better safety and security to beneficiaries who fail to submit their claims to Metlife.
MetLife has been undertaking several efforts to trace the location of various policy holders who have not been in touch with them. As a part of their efforts, Metlife is also developing a website which can help customers find out their policy details and reach them for claiming their benefits.
The agreement between Metlife Inc and the State Regulators was arrived at last week. As per the agreement, officials said, that 30,000 Californians will receive up to $40 million. The amount that the other states will receive has not yet been revealed.
