Who Can You Trust?

I deal with life insurance, so a story like this is extremely depressing. We expect better from corporate America, and are sometimes (often?) disappointed. Bottom line: it’s essential to keep up with the news in order to know who is worthy of trust.

The company in this instance is Gerber Life Insurance — yes the same name as the baby food manufacturer, but a different company.

A recent examination of the company’s operations in North Carolina resulted in massive fines. The NC insurance commissioners office found a number of improper activities associated with accidental death and dismemberment policies issued by the company. (Disclosure: these are policies I usually recommend that consumers not buy, as I view them as a waste of money in most cases. There are better ways to use scarce dollars.)

Investigators found that Gerber

  • Was taking an average of 208 days to process claims
  • Was delaying processing by requesting unnecessarily and irrelevant documentation (tax returns??)
  • Caused some parents to have to file law suits to collect claims to which they were entitled, reducing their benefit by the cost of their lawyer fees
  • Used a third party not approved by North Carolina to process claims

As a result of this investigation, Gerber was required to pay $2,533,665 to policy holders, and $1,102,000 in fines to North Carolina.

I wonder how many other states need to open investigations.

I cannot imagine putting families through this much grief after the loss of a child. Who could do that?

Needless to say, I have no intention of writing any insurance with Gerber.

Truth

Source: https://insurance-forums.com/life-insurance/gerber-life-fined-1-1-million-for-add-claims-violations/

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