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ID:

586

Date:

2010-09-14

Headline:

Veterans Agency Changes Terms for Prudential Claims

Reporter's name:

Jeff Plungis and David Evans

Delay/denial:

No

Lawsuit:

No

Fees:

No

Media outlet:

Bloomberg

City:

Washington, DC

Summary:

For over ten years, the Department of Veterans Affairs (VA) and Prudential Financial Inc. used a little-known oral agreement which the VA concealed from veterans' beneficiaries to enable the insurance company to skim all the interest from what should have been lump-sum payouts to survivors. A FOIA request revealed not only that the VA failed to inform soldiers and their families of the agreement, which let Prudential reject requests for full payouts and give beneficiaries a checkbook instead, but also that the 1999 verbal agreement sparked concern among top VA insurance officials.

Notes:

(See also New York Times, "V.A. Agreed to Withholding of Benefits, Documents Say," http://www.nytimes.com/2010/09/14/business/14insure.html, 9/13/10)

Keywords:

Department of Veterans Affairs, VA, Prudential Financial Inc., Prudential, death benefits, veterans, beneficiaries, insurance, Alliance Accounts, VA’s Servicemembers’ Group Life Insurance, SGLI, Office of Servicemembers’ Group Life Insurance, Veterans for Common Sense

URL:

http://www.bloomberg.com/news/2010-09-14/u-s-veterans-agency-says-prudential-to-send-beneficiaries-lump-sum-checks.html


Agencies:

VA

States:

DC
NJ

Categories:

business
military
veteran


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