Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Navy man's widow sues insurance giant for his full death benefits
Philadelphia Daily News ^ | May 2, 2013 | MENSAH M. DEAN

Posted on 05/02/2013 4:23:40 PM PDT by ConservativeStatement

WHEN NAVY PETTY Officer Jeffrey Ferren died of a heart condition last year, his widow, Gabriella Kubinyi, believed she would at least be taken care of financially.

That's because as a member of the U.S. armed forces, Ferren, 31, of Camden, had life insurance through Prudential Insurance Co.

But Kubinyi's grief at losing her husband in April 2012 was only compounded when the Newark, N.J., insurance giant told her that she would not be receiving his full $400,000 death benefit.

The insurer said a clerical error had resulted in the wrong amount being deducted from her husband's paychecks, therefore she would not get the full benefit amount, according to attorney Aaron J. Freiwald, who yesterday filed a lawsuit against Prudential in Philadelphia Common Pleas Court.

(Excerpt) Read more at articles.philly.com ...


TOPICS: Miscellaneous
KEYWORDS: insurance; navy; prudential
How abnormal a situation is this?
1 posted on 05/02/2013 4:23:40 PM PDT by ConservativeStatement
[ Post Reply | Private Reply | View Replies]

To: ConservativeStatement

I think this falls under YOUR MISTAKE not mine

Pay up


2 posted on 05/02/2013 4:25:11 PM PDT by Mr. K (There are lies, damned lies, statistics, and democrat talking points.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. K

I think you’re right. If she acted in good faith, they need to step up.


3 posted on 05/02/2013 4:26:07 PM PDT by FormerLib (Sacrificing our land and our blood cannot buy protection from jihad.-Bishop Artemije of Kosovo)
[ Post Reply | Private Reply | To 2 | View Replies]

To: ConservativeStatement

Their fault. They’re going to have to pay. Save the lawyer’s fees...


4 posted on 05/02/2013 4:27:51 PM PDT by neodad (USS Vincennes (CG-49) Freedom's Fortress)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mr. K
> I think this falls under YOUR MISTAKE not mine > > Pay up Yep; to do otherwise would encourage corruption -- the insurance company would have incentive to bribe the clerks to have the wrong amount taken out as a matter of standard practice so that they would never be obligated to pay the full amount.
5 posted on 05/02/2013 4:28:51 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: ConservativeStatement

How many people will not chose Prudential because of this? Probably more than $400,000.


6 posted on 05/02/2013 4:32:02 PM PDT by Slyfox (The Key to Marxism is Medicine ~ Vladimir Lenin)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ConservativeStatement
IMO Insurance companies are largely legalized rackets. As such they will weasel out of paying whenever and however they can.
7 posted on 05/02/2013 4:33:34 PM PDT by luvbach1 (We are finished.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ConservativeStatement

“Oh, we’re sorry, we just discovered that we undercharged you by one penny in 1983, so, no benefits whatsoever as the time for correcting the error has elapsed.”

Some day.


8 posted on 05/02/2013 4:36:05 PM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: luvbach1

Insurance is legalized gambling.

I’m betting them (my premium) I’m going to die, crash etc. They’re betting me (the face value of the policy) that I won’t.

They are welching on a bet. That they didn’t properly validate the bet, does not absolve them of the liability for the face value of the bet.


9 posted on 05/02/2013 4:38:11 PM PDT by Ouderkirk (The Government is actively preparing to go to War with a significant portion of its own Citizens.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: ConservativeStatement
Prudential is an excellent company, but as a public company they have fiduciary responsibilities to their stockholders by law. This is a very foolish and shortsighted decision on their part. In most instances when an incorrect age results in lower premiums being paid during the course of a contract, the premiums that should have been paid are deducted from the face amount. In this case an incorrect premium deduction is really the same scenario. I suspect the final outcome here as well will be to deduct the correct premiums from the $400K. The time it takes to sort this out will result in an interest payment to the beneficiary from the date of death of the insured, that will be at approx. 8%.
10 posted on 05/02/2013 4:43:00 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: swamprebel

acctuaries are a bothersome bunch, calculating the cost of assuming the risk of death of an insured is a mathamatical formula, but the company has two options here, one is to pay the amount of insurance the paid premiums would have purchased(probably cheaper for the company), or to deduct the correct premium from the $400K, with some publicity I predict they will have to do the latter, and the balance will ultimately be paid to the beneficiary.


11 posted on 05/02/2013 4:51:03 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: swamprebel
Prudential is an excellent company, but as a public company they have fiduciary responsibilities to their stockholders by law.

Prudential is a mutual insurance company. As such they have no shareholders. The policy holders are the "owners".

12 posted on 05/02/2013 4:51:59 PM PDT by Hugin
[ Post Reply | Private Reply | To 10 | View Replies]

To: ConservativeStatement
How abnormal a situation is this?

It all depends on who wants to claim the life insurance policy and how much it's for..

From my own personal experience, I had contributory life insurance thru my company and I knew exactly how much I was supposed to pay and how much the policy was for.

Putting the sad factor aside, I have to side with the insurance company on this one. Our military personnel are not stupid and this soldier knew they weren't taking out enough money for the policy he wanted. That's his fault........

13 posted on 05/02/2013 4:58:19 PM PDT by Hot Tabasco (This space for rent)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hugin

Prudential Life is owned By Prudential Financial Inc. and is listed on the NYSE as ‘PRU”.


14 posted on 05/02/2013 4:59:27 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Hugin

Click on the “our company” tab:
http://lifeinsurance.prudential.com/view/page/iliconsumer/393


15 posted on 05/02/2013 5:01:05 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Hugin
"Prudential has evolved from a mutual insurance company (owned by its policyholders) to a joint stock company (as it was prior to 1915). It is now traded on the New York Stock Exchange under the symbol PRU. The Prudential Stock was issued and started trading on the New York Stock Exchange on December 13, 2001."

When I was in school and the company was still mutual, one of my professors described Pru as a "giant, unguided missile". I have no great love for the company. But who, exactly, was responsible for deducting the correct amount from each paycheck? Pru or the US Navy? If the Navy screwed this up, shouldn't they be responsible?

16 posted on 05/02/2013 5:03:19 PM PDT by Sooth2222 ("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Ouderkirk
Insurance is legalized gambling.

I agree it is that, too, when it is operated ethically. It's a racket when, as so often happens, it weasels out of paying.

17 posted on 05/02/2013 5:05:27 PM PDT by luvbach1 (We are finished.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: ConservativeStatement

Hope the Navy Chief Petty Officer’s Association takes them to task. In fine CPO to boot style.


18 posted on 05/02/2013 5:05:55 PM PDT by SandRat (Duty - Honor - Country! What else needs said?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ConservativeStatement

Insurance is organized crime.


19 posted on 05/02/2013 5:06:17 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they'd be)
[ Post Reply | Private Reply | To 1 | View Replies]


FR is funded solely by the freedom loving folks who love and use it.
Stand with Free Republic.

20 posted on 05/02/2013 5:11:42 PM PDT by RedMDer (May we always be happy and may our enemies always know it. - Sarah Palin, 10-18-2010)
[ Post Reply | Private Reply | View Replies]

To: swamprebel; Sooth2222

I stand corrected. I worked for Pru for a while in the early 90s, when they were a mutual company. I wasn’t aware of the change in status.


21 posted on 05/02/2013 5:11:52 PM PDT by Hugin
[ Post Reply | Private Reply | To 15 | View Replies]

To: Sooth2222

Insurance is more regulated than almost any other industry, which makes me about the annual statements the policyholder was recieving, most UL policies can be underfunded, as they are flexible premium, flexible face policies, but the annual statements would have clearly stated how long the policy would exist at current premiums. Letting the policyholder know of an insufficient premium deduction.


22 posted on 05/02/2013 5:16:56 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: swamprebel

I would say that they will have to spend more than $400,000 to counter the negative publicity ALREADY. Obviously, they have no “damage control” specialists and are too stupid to hire consultants.


23 posted on 05/02/2013 5:23:10 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is v?ery late in the day.")
[ Post Reply | Private Reply | To 10 | View Replies]

To: editor-surveyor

“Insurance is organized crime.”

True, but they pay taxes, so it’s OK.


24 posted on 05/02/2013 5:23:57 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is v?ery late in the day.")
[ Post Reply | Private Reply | To 19 | View Replies]

To: editor-surveyor
Insurance is organized crime.

It sure is, especially long term disability policies as my wife and I are experiencing. We paid in for ten years and now won't collect a dime from them. It is setup as a legalized scam.
25 posted on 05/02/2013 5:25:57 PM PDT by jy8z (From the next to last exit before the end of the internet.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: ConservativeStatement

Another piss poor argument by an Insurance giant trying to see if they can get away without paying.


26 posted on 05/02/2013 5:27:42 PM PDT by VideoDoctor
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hot Tabasco
putting the sad factor aside, I have to side with the insurance company on this one. Our military personnel are not stupid and this soldier knew they weren't taking out enough money for the policy he wanted. That's his fault

You've obviously never had the misfortune of dealing with the jackasses that work in military administration and dispersing shops.

You can't force these people to do their job. I personally went to the admin shop over a pay issue more than 20 times over the the course of a year because of a pay issue (over paid). I was told I was wrong, disruptive, dumb grunt etc and literally escorted out of the shop and told not to return for the issue because I was wrong.

Then I got docked for 18 months of over payment....luckily they waited until I was deployed to cut my pay (fortunately I had saved the extra).

Then there was the time they paid me, and by me I mean my government travel card $10,000 for a trip I didn't take. I was deployed t the time and unable to cash the check so I could repay the government. So, the money sat as a positive balance on the card and the government took my pay, which meant the money my wife and kids counted on didn't get to them.

Don't worry no one was ever held accountable for it.

Oh yeah and by the way, if you have auto draft setup for to pay your bills and your paycheck doesn't come.....it's still you losing a stripe when the check bounces.

Lucky for me I've been able to set money aside to avoid major trouble....there are others that have had unforeseen circumstances that spiral out of control after getting hit with a pay problem. Don't worry, getting reduced in rank, put on barracks restriction, AND cut your lower rank's pay.

My point is you don't have a choice a lot of times when it comes to your pay. There are jobs in the military that are the biggest welfare secret in America (they also seem to attract the Amish - like administration and supply). You can do the bare minimum possible, never be held accountable for your f#ckups, and still get your gubmint check on the 1st and 15th. But don't dare say anything about it you racist.

From 14 years experience of watching this disaster - I side with the squid's widow.

27 posted on 05/02/2013 5:27:48 PM PDT by Repeat Offender (What good are conservative principles if we don't stand by them?)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Repeat Offender
Don't worry, getting reduced in rank, put on barracks restriction, AND cut your lower rank's pay.

should say:

Don't worry, getting reduced in rank, put on barracks restriction, AND cutting your lower rank's pay (ie, you lose a stripe and they cut the lower rank's pay by 50% for up to 45 days) doesn't compound the problem at all. /s

(sorry touch screen deleted it in previous post)

28 posted on 05/02/2013 5:31:21 PM PDT by Repeat Offender (What good are conservative principles if we don't stand by them?)
[ Post Reply | Private Reply | To 27 | View Replies]

To: The Antiyuppie

G.E. sent jobs to China, while Jeffery Immelt was sitting on Obama’s jobs council. How many G.E. appliances are in the homes of Americans? Unfortunately the majority of America has the attention span of a 12 year old.


29 posted on 05/02/2013 5:55:38 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: swamprebel

The military pay complex is kinda hard to understand. They take monthly payments from your pay automatically when you get insurance and you don’t think twice about the amount because they notify military pay how much to take out.


30 posted on 05/02/2013 6:04:41 PM PDT by america-rules
[ Post Reply | Private Reply | To 29 | View Replies]

To: FormerLib

Like winning a jackpot on the slots in an indian casino...they always say too bad, the machine just misfunctioned..no payout


31 posted on 05/02/2013 6:06:10 PM PDT by goat granny
[ Post Reply | Private Reply | To 3 | View Replies]

To: Slyfox

Back in the 90s, the wife and I took out policies on our lives. Prudential did blood work and came back to say they would write me but not the wife. Sugar level high or something. Turned out she was pregnant so they said come back once she has the child. Needless to say, I declined my policy with them and have never touched Prudential since.
Creeps.


32 posted on 05/02/2013 6:15:05 PM PDT by George from New England (escaped CT in 2006, now living north of Tampa)
[ Post Reply | Private Reply | To 6 | View Replies]

To: america-rules

I can understand that, I was raised in a Federal house, everything in triplicate, and that was a few decades ago when a vast majority of Govt employee’s cared about the jobs they were doing. It is so very important that people read their contracts, and associated statements. Honest human error can also happen. The greeks had a saying from many Centuries ago, Caveat Emptor, “let the buyer be aware”.
I think this widow’s struggle is sad, and I wished she and her departed loved one had read, and asked questions when they did not understand. The deck page would have listed the standard premium due, and frequency. It wounds me worse that this happened to a service family, but Insurance is just a legal contract. People please read and understand your contracts.


33 posted on 05/02/2013 6:17:48 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 30 | View Replies]

To: swamprebel

BTW what ever happened to those indestructible black Govt. ink pens??? They were the best.


34 posted on 05/02/2013 6:22:02 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 33 | View Replies]

To: Slyfox

I dumped Prudential because their agent kept trying to churn my policies. He got me once.

Once.


35 posted on 05/02/2013 6:22:31 PM PDT by SargeK
[ Post Reply | Private Reply | To 6 | View Replies]

To: swamprebel

My experience with Prudential is that their agents are borderline criminals who churn policies and sell crap. They fraudulently sell new policies after telling the policy holder that the return on the cash value of the existing policy will pay its own premium. You find out different when you get a premium bill for what you thought was a paid up policy that now has zero cash value.

That’s my experience. And now I am wiser.


36 posted on 05/02/2013 6:35:04 PM PDT by SargeK
[ Post Reply | Private Reply | To 10 | View Replies]

To: SargeK

That sounds like ethically challanged individuals, their are Doctors, Lawyers, and Politicians like that too.


37 posted on 05/02/2013 6:42:52 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: SargeK

Jeff Atwater is the Commissioner of Insurance in your State of Florida, agents are required to have a Million Dollar errors and ommissions policy. If the State agree’s that you have been wronged their is recourse for you to be made whole.


38 posted on 05/02/2013 6:50:35 PM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: swamprebel

“G.E. sent jobs to China, while Jeffery Immelt was sitting on Obama’s jobs council. How many G.E. appliances are in the homes of Americans? Unfortunately the majority of America has the attention span of a 12 year old.”

I know plenty of people who won’t touch anything made by them for this and other reasons (the near zero corporate tax year they had, being one of them) and we have a fairly large appliance factory here.


39 posted on 05/02/2013 7:27:32 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is v?ery late in the day.")
[ Post Reply | Private Reply | To 29 | View Replies]

To: Mr. K

I agree wholeheartily!

What if he had been paying too much, would she get a higher insurance benefit payout? No way!


40 posted on 05/02/2013 10:44:40 PM PDT by rawhide
[ Post Reply | Private Reply | To 2 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson