AGLI Accused of Denying Woman Proper Life Insurance Payment

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A Massachusetts woman has filed suit against American General Life Insurance Company (AGLI) alleging the defendant violated state law and the terms of her life insurance policy by failing to timely pay a death benefit and denying statutorily mandated interest.

The plaintiff says her husband passed away in November 2015, after which she filed a claim with AGLI as his beneficiary. The defendant was required to send the woman her payment within 30 days of the notice of death, the suit claims, but she allegedly didn’t receive the check until March 2016, more than 108 days after she submitted her claim. Moreover, the complaint claims the “untimely payment” didn’t include interest as required under Massachusetts law.

The plaintiff says she contacted the company seeking her missing interest and was denied. The company allegedly attempted to send her a payment “based on a 1% interest calculation,” which the suit claims is well below the required rate, but the woman says the bank would not honor its check when she tried to cash it.

The case was recently removed from state court to the District Court of Massachusetts.