Thursday, March 21, 2013

Texas insurance company must return $25 million in funeral policies

Posted: October 9, 2012
A Texas-based company must return $25 million in funeral policies after a settlement reached in California, according to reports.

California officials reached the agreement with Forethought Group Inc., a company that offers retirement planning and end-of-life needs, after a 2008 audit that found companies that failed to promptly pay benefits.

John Chiang, California state controller, said Forethought will pay almost $25 million to California beneficiaries and agreed to adopt reforms to make sure benefits are paid promptly in the future.

Forethought also has to pay 3% compounded interest on the value of the held amounts from 1995, or from the date of the owner’s death, for its failure to comply with unclaimed property laws.

Chiang previously reached agreements, worth a total of $135 million, with John Hancock, Prudential Insurance and MetLife.

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