NM Goes After Life Insurer That Refused To Pay Claim

Nov 5, 2012

New Mexico officials are trying to collect more than $100,000 from a life insurance company that refused to pay when two state workers who had paid for the supplemental insurance died.  General Services Department Secretary Ed Burckle tells KOAT-TV says the Oregon-based provider of the policies refused to pay the two men's families because a medical history form wasn't in their files.

Burckle says the department paid the families the $55,000 each they were owned and is demanding the insurance company repay the state. So far it has not responded.

Burckle tells KOAT his agency might terminate the insurance company's contract early and find another company to provide the supplemental insurance.

State officials are going through all employees' files to ensure no one else has any paperwork problems.


Information from: KOAT-TV,

Copyright 2012 The Associated Press.