VA Unaware of Prudential 'Profiteering' off Veteran Insurance Payouts
Military.com
by Bryant Jordan
Oct 05, 2015
The Veterans Affairs Department was not aware that Prudential Insurance encouraged its counselors to keep casualty pay-out monies in-house as a way to boost company profits, or that its agents were schooled to try to change the minds of surviving family members who sought a traditional lump-sum payment.
Prudential's practices came to light last week with the court-ordered release of internal company documents to the Veterans of Foreign Wars, which joined in a class-action lawsuit against Prudential in 2010. Prudential is under contract to handle Sevicemember Group Life Insurance and Veterans Group Life Insurance policies.
Among the documents was one detailing a plan to increase company profitability by retaining control of money that would normally be awarded to survivors in a lump sum. Another revealed the company trained personnel on how to deal with survivors who insisted on a lump-sum payout rather than leaving the money with Prudential in "Alliance Accounts" that provided the beneficiary with a fraction of the interest that Prudential would gain from it.
VFW National Commander John A. Biedrzycki Jr. last week called for an independent investigation of the VA and the Alliance Accounts, saying the department turned a blind eye to Prudential's profiteering off beneficiaries.
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