Anyone familiar with life insurance companies and how they work?

This sounds more like poor customer service than a well-run life insurance company. If they will not talk to you, I would call either a consumer advocacy group or the local Better Business Bureau and see if they will apply some heat. If you know a lawyer, perhaps a letter from a lawyer would get you some answers as well.

We are lining up a lawyer, but (interesting note) they claim they cannot talk to him unless they have a written power of attorney on file with the claims office.

Don’t worry about what they claim to need to speak to your attorney. Let the attorney handle that.

For now, keep tabs on all contact you’ve had with them to fill the attorney in to how the insurance company is handling this. Write down any phone conversations you’ve had. Keep all emails-etc.

So, you are the beneficiary? Do you have a copy of the policy? Are there any waivers?
Could they be arguing a pay out because of the cause of death?

I used to process life insurance proposals, but I had nothing to do with claims.

Where is the inusrance company located, @rojo?

@cazzie Yes, one of the beneficiaries, No, it was through a group claim and we have not found a copy of it. It is not a cause of death thing, we think it has to do with the fact that my sister has POA for my mother (was mumbled in passing by one of the claims reps during one of the conversations)
but have not been able to get actual verification of this or even find out what the possible problem this might be causing.

@bkcunningham I believe their home office is in New York. We are in Texas and Alabama.

Every state has an insurance commissioner who regulates the company. Contact your state insurance commisisoner. Regardless of whether someone has power-of-attorney or not, they must put you in touch with the appropriate person. Even if it is a person who says we can’t talk to you because you don’t have POA. Document everything; names of people you speak with, date, time, conversation, everyting.

Depending on whether the insurance has been in force for the minimum period required by the policy such that certain exclusions no longer reply. The circumstances surrounding the death of the insured need to be examined as well. Normally this should not take longer than a week unless certain medical (Toxicology) tests actually take longer.

The insurance company should speak truthfully and without undue delay to the sole beneficiary (if their is one) or the executor of the estate of the insured. Failure to do so in at a minimum discourteous and possible illegal as well,

Each province and State has an insurance commissioner who can act as an advocate for the beneficiary or executor. Normally they are independent from the insurance companies.

I hope your issue is promptly and properly resolved.

I was for several years a licensed life underwriter in Canada.

Who is the executor of the will? Is it your sister? Is this all part of a settlement of an estate?

The Insurance company only has to talk to the executor and that is what they normally do. If you have questions, you have to have your sister deal with it. Simply being a beneficiary of an insurance policy gives you no rights to deal with the matter.

Is there a date set for the settlement of the Estate?

@cazzie No, it is not an estate settlement, just payment to beneficiaries. As a surviving spouse, my mother received everything. My sister is the one who has been dealing with them for my mother (as POA). They made it quite clear up who they would and would not talk to. We got in all the necessary paperwork up front (claim form, death cert., POA, etc) and have been trying to get them to come to some kind of decision for several months now.

@Dr_Lawrence would the insurance commissioner we need to contact be from the state in which the insurance co. is located (NY) or the one in which my parents resided, Alabama? I am thinking the latter but would like to verify.

My first contact would be the one where the insurance company has its head office.

@rojo, Talk to both the insurance commissioners office of the state your parents reside in, and the state the insurance company is headquartered in.

And any lawyer you get will deal with having the necessary legal standing to get what you want from the insurance company. When you do get the lawyer have him ask about collecting interest payments on the late disbursements.

I know here they have a certain amount of time to pay the beneficiaries. If there is a dispute the money goes into an escroe account and the interest generated goes to whoever wins the case.

Great answers @WestRiverrat and @Dr_Lawrence.

They take a large portion of your money gradually over the period of your life. When you die, they give some of it back to your heir all in one lump sum.

They’re betting that you’ll live long enough that you’ll end up paying more in the long run than they have to pay back when you die, and thus make a profit. Remember, all companies are in business to make a profit, not give charity.

You have gotten some very good advice here. Just one point,
Your first contact should be with the broker or agent that sold the policy to owner of the policy. The selling agent and selling brokerage, if still affiliated with insurance company, have been earning commissions from the premiums you have been paying all these years.

Your recourse should be to the Department of Insurance in the STATE where it was SOLD, not where the insured died or where you live now. That policy was sold under the laws in place as in that state at that time.

SRM

@srmorgan Thanks, that is what I thought. We are still trying to get it resolved. Hopefully the lawyer will help. When you call, one of the first options is “If you are calling from a lawyers office, press 1” Have considered pushing “1” just to find out where it goes.

Still wondering where/what this “Admin.” is? What is the next step after claims?

Call an attorney. The company is trying to find a way not to pay the claim or reduce it.

Update: A full week after being promised a phone call (they got the day right, just not the date) we have been informed that it is now with “Legal”. Evidently the chain of command is Claims – Administration – Legal – ???(who knows) – God.
They still can’t tell us anything but now it is because Legal has it and it is “out of their hands”. The only thing claims would say was that legal said we would be getting correspondence to us within 7 to 10 days. We have retained an attorney and on his advice are awaiting receipt of said correspondence so we know how to respond.

Thanks for the update. Good to hear you have an atty on your side.