New York Insurance Companies Ordered to Stop Profiting off Troop Deaths
State regulators
in New York on Friday ordered insurance companies to pay death benefits to families in full, beginning immediately. Previous practices by insurance companies were to put death benefits into a type of “checking account”, where the company would collect interest on the funds and invest it for their own profits. Under the new requirements, when a serviceman or woman is killed in action, the insurance provider must remit one bulk payment, with which the family can invest as they see fit, and retain all of the interest earnings.
New York is the first state to enact this requirement, according to Benjamin Lawsky, the State Financial Services Superintendent. According to Lawsky, it is more beneficial if a family invests the funds themselves, rather than rely on the “retained assets accounts” that insurance companies have been using to profit off the deaths of American troops. Insurance companies who used this scheme would often give families a minor portion of the interest to trick them into believing the companies were providing a useful service.
According to The Saratogian, The Life Insurance Council of New York, Inc., a lobbying group for insurance companies in the state has yet to comment on the new requirements or their existing practices.
It is unknown at present time if this directive will be applied in California or other parts of the United States. The Veterans Affordable Housing Program is dedicated to helping low and moderate income, disabled, or transitioning veterans and their families find affordable housing in California, Arizona, Nevada, and Washington. We can help you by providing rent relief, down payment assistance, reduced-cost housing, subsidies, and more. Please contact us if you, or somebody you know, is a veteran and is in need of housing assistance.
- Insurers must pay veterans benefits – ASSOCIATED PRESS [saratogian.com]
Helping Veterans with the Veterans Affordable Housing Program…
Affordable Community Living is a qualified 501(c)(3) charitable organization providing low and moderate income families with quality, affordable housing since 1997 and now offers help to veterans and their families through it’s Veterans Assistance Program.
Learn more about our mission and how we aim to help America’s heroes.
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