[ValerieUSA]

Teenagers who work in fast food places with signs telling would-be robbers that no one is armed inside - these kids are at unreasonable risk - are they insured by the businesses?

This insurance SCAM operation is shocking to me.

[BuckeyeOhio]

After 35+ years in the insurance business, I find this very hard to believe. Even if a company ownes and pays for the premium, the insured MUST sign the application. Even on group life insurance, the insured MUST sign an enrollment form of some type and they indicate a beneficiary.

One of the rules in life insurance is the owner must have an insurable interest - just because a person is an employee, doesn't make them an insurable interest. The company has to PROVE they would be financially harmed by the death of an employee. Walmart would not be harmed by the death of a minimum pay employee.

[aardvark1]

Scam?! This is a non-story. Wake me up when it's over.

[Buffalo Bob]

So, exactly what is wrong with Wal-Mart (or any company) using its money to take a life insurance policy out on an employee and collecting if that employee dies.

[WaterDragon]

Third-party policies are very common. Someone could take out a policy on your life, and you'd never know it. Unless there is reason to believe the one who holds the policy cause the death of the person insured, then I don't understand the complaint. This kind of policy has been in practice since insurance was first conceived. Maybe unsavory, but not illegal. Don't be too quick to jump on businesses trying to survive. This country is over-regulated as it is.

With all the laws on the books protecting workers, it's unlikely a company will negligently cause the death or be careless of a worker's life just to cash in on a policy.

ValerieUSA, the example you cite is one I think really does need checking out by authorities. That DOES sound as though the company is deliberately negligent of the workers' lives, knowing they'll cash in on a policy.

If people want to cash in on insurance policies if their loved one dies, then they should take out those policies in the first place. They have no legal right to insurance payout on policies someone else took out.

[RedBloodedAmerican]

If anyone thinks Walmart comes across thier wealth honestly...they need their head examined. Those people rub shoulders with men who know how to swindle and lie to beat the system.

[Mamzelle]

Why should the heirs get the payoff? They didn't pay the premiums. I don't see the scam, here, just lawyers looking for some money. Good thing they don't insure lawyers, we'd have too many reasons to kill them with the reasons we already have!!

Actually, the loss of any employee causes some expense. What I don't quite get is why WM would want to pay these premiums.

[flying Elvis]

What annoys the hell out of me about this is these same companies provide pitiful health insurance packages to their workers yet cash in big time when one dies. As much as I hate labor unions, I'll cheer if they organize Walmart employees.

[supercat]

I recall my late wife telling me that, at least in Illinois, third-party life insurance requires the consent of the 'insured'. I don't think there must be an insurable interest necessarily, but I don't think secret policies are kosher.

[FYI, I may be misremembering or misunderstanding what my wife told me, but since worked in the industry and passed her LOMA courses, she should have known].

[lodwick]

Thanks for this most disturbing find. I knew about KeyMan insurance, but this dead janitor stuff is truly reprehensible.

[parsifal]

They're a bunch of friggin ghouls! I hope every company that does this gets class-actioned to pieces. parsy.

[Prototype01]

Hey Val-check out the Wal-Mart statement of ethics:
http://members.aol.com/vtpa/wmethics.html