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: Personal Injury and Social Security Disability BlogDead Peasant Insurance Policies Draw Litigation
By Robert Kraft
In a blog on the Wall Street Journal website (2/24) Ashby Jones wrote that "dead peasant" insurance policies are "spawning a good deal of litigation." Jones said, "The point of 'dead peasant' policies seems to be this: Companies contribute money to the policies, which then can be used to pay for a variety of company expenses. In addition, when employees, retirees and former employees die, the company receives tax-free death benefits." He added, "in the Texas case, the widow of a disabled former employee of Houston-based Amegy Bank NA is suing to recover $1.6 million in life-insurance death benefits the bank received after her husband died last year."
From the American Association for Justice news release.
Full post as published by Personal Injury and Social Security Disability Blog on February 26, 2009 (boomark / email).
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