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NetCare asked to settle unpaid death benefit claims
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Posted on Feb 11 2012
By Haidee V. Eugenio
Reporter
Reporter
Acting CNMI Insurance Commissioner Ivan A. Blanco asked NetCare Life and Health/Moylan’s Insurance Underwriters to settle the claims due to survivors of its deceased clients who are also CNMI retirees, or the matter will have to be decided by a court.
“In the interest of avoiding the expenses of litigation, it is our sincere wish that NetCare Life and Health gravely contemplates its next step to avoid the consequences of not fully honoring these particular claims,” Blanco said in a Feb. 6 letter to NetCare director Troy K. Moylan.
Blanco, also the deputy Commerce secretary, said these claims involve those previously paid out benefits under the accelerated death benefit under Individual Assurance Co. in which 50 percent is paid out upfront if a member suffers a stroke, heart attack, renal failure, or cancer.
He said the Insurance Commissioner’s Office believes that regardless of whether NetCare carried over this benefit under their contract with the NMI Retirement Fund, the beneficiaries are still entitled to the remaining 50 percent of the policy amount.
“These claims were filed prior to the NetCare Life’s termination of its agreement with the NMIRF effective Dec. 15, 2009. As such, these claims still need to be honored,” Blanco added.
Rep. Stanley Torres (Ind-Saipan), who has been asking the Office of the Attorney General and Commerce since 2009 to take action against NetCare/Moylan over its continued alleged failure to issue death benefits to four deceased retirees who were enrolled in the CNMI government’s life insurance program, said he’s glad that the acting Insurance Commissioner is moving the issue.
“Finally, there’s action on this,” he added.
