Insurance benefits

California State Controller’s Office

Our attorneys represented the California State Controller’s Office in the Controller’s efforts to pursue and resolve disputes between the State and numerous life insurance companies that have failed to turn over death benefits to beneficiaries, despite the fact that the policyholder is deceased and the statutory dormancy period has run.

After months of negotiations, California State Controller John Chiang announced a major multistate settlement with Prudential Insurance Company of America, which, depending on the completion of the audit, may return up to $20 million to the families of deceased life insurance policyholders in California.

Retained by the Controller in July 2011 to assist with claims relating to unpaid death benefits, our attorneys facilitated the settlement negotiations with Prudential, which 19 other states subsequently joined. Given the substantial amount of funds owed to the State, our attorneys continue to identify potential litigation targets to the extent other insurance providers refuse to comply with the audit of the unclaimed property on their books, and currently are negotiating with a number of other insurance companies that would prefer not to face litigation.

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