|
Fallen Soldiers’ Parents Sue Insurance Co. Over Benefits
The parents of six fallen U.S. soldiers are accusing an insurance company of paying paltry interest insurance benefits, keeping most earnings for itself.
|
(File photo)
|
0 Comments 
SPRINGFIELD, Mass. (August 30, 2010)--The parents of six fallen U.S. soldiers have filed a lawsuit that accuses Prudential Financial of paying paltry interest on military life insurance benefits and keeping more generous interest earnings for itself.
Five plaintiffs joined the original plaintiff Monday in the lawsuit that was filed in July in U.S. District Court in Springfield, Mass.
They say Prudential paid them 0.5 to 1.5 percent interest on payouts it held if the beneficiaries did not cash them out after the soldiers' deaths, but say the company made 5 to 6 percent interest on that money.
The Newark, N.J.-based insurer defends its handling of the money.
Spokesman Bob DeFillippo said it is kept in easily accessible accounts for which the interest rate is separate from long-term investments that bring the higher returns.
