My mother took out a policy with NY LIfe throuigh her AARP membership in late 1990's. She decded to switch because her previous insurer kept forgetting to process her payments and she was cancelled a cvouple fimtes when they found her checkes sititng in their drawer (she paid in person!)
When she died in Dec 2001, my sister filed her death claim through the insurance compeny. She received a check for a little over $300 saying thaty were returning the premiums she had paid because she had died of a "preexisting medical condition" and had they known about it, they would never have issued the policy!
I took over and informed them that since they advertise "No medical questions" and you "cannot be refused" that if they had medical concerns about her health it was THEIR responsibility to determine that when they issued the policy.
BY the way, she died of an septic infection foilliwing emergency surgery because of a hiatal herni. So her "pre-existing condition" was the fact that she was orn with a hiatal hernia!
I threatetned a fraud charge and followed through filing a fradulent advertising charge with the NYS Attorney General and surprisingly a couple of weeks later, we received the check for the full amount.
I then sent a letter to AARP requesting them to look into the practices of the companies they tout and sell for but received no answer. Later learned that this is a BIG money maker for AARP so they don't really give a damn if their members and especially their famlies are getting screwed.
My biggest concern is taht this association which claims to be fighting for the rights of retired person, is actually maing money off of a fraud that gives seniors the reassurance that they are leaving something for their famileis to lessen the burden of a funeral, etc and then after the person dies, these companies refuse the claim.
Just another examnple of the old adage that insurance companies refuse EVERY claim hoping that people won't fight back. If you do, you can get what you're owed!