House Opens Probe Into Prudential Life Insurance

Law360, New York (August 11, 2010, 6:34 PM EDT) -- The chairman of the House Oversight Committee announced an investigation Wednesday into life insurer Prudential Financial Inc.'s increasingly maligned practice of not paying cash directly to families of dead U.S. soldiers.

Rep. Edolphus Towns, D-N.Y., opened the investigation upon learning the company does not automatically make a lump-sum payment to families of deceased soldiers but instead deposits money into a general fund.

Prudential, which is the life insurer for all U.S. service members, then notifies families an account has been opened for them and sends them...
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