Story display


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)

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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