Insurer Will Pay $25M To End Death Benefits Probe

Law360, New York (October 9, 2012, 3:46 PM EDT) -- California's controller said Monday that end-of-life policy provider Forethought Group Inc. had agreed to a $25 million settlement for allegedly failing to pay death benefits to beneficiaries of life insurance policies, despite having access to federal records indicating that policyholders had died.

Texas-based Forethought is the fourth insurance company to settle with the state in a wide-ranging investigation over companies' death benefits practices, Controller John Chiang said. The other agreements, worth more than $135 million for California, were reached with MetLife Inc. in April, Prudential Insurance...
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