New York Attorney General Andrew Cuomo has subpoenaed five more insurers in a widening probe into whether the industry has defrauded families of deceased members of the military, Reuters reports.
The latest subpoenas were issued to Hartford-based Aetna Inc , American International Group, CNO Financial Group, Lincoln National Corp. and Principal Financial Group Inc, Cuomo spokesman Richard Bamberger said on Thursday.
Cuomo has subpoenaed at least 13 companies in a widening probe into whether insurers have been siphoning for themselves millions of dollars of death benefits that were intended for families of deceased military personnel.
At issue is whether insurers, rather than pay out lump sums upon the deaths of the policyholders, instead move money into potentially risky “retained asset accounts” that they control, and then pay out low single-digit yields to survivors.
The U.S. Department of Veterans Affairs, the Federal Deposit Insurance Corp and the National Association of Insurance Commissioners are among other agencies and groups that have been reviewing the accounts.
Aetna spokeswoman Cynthia Michener said that insurer will cooperate with its subpoena, and that its accounts provide customers with “immediate access” to their funds.
