ComplaintsforOffice of Federal Employee's Group Life Insurance

• Initial Complaint

  09/01/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  My husband died last September. *** ******* of ********************* Life Insurance, also known as #FEGLI (Federal Employees' Group Life Insurance Program) refuses to return calls, letters, faxes or pay my husband's life insurance policy (passing in 9/2021) after we paid monthly premiums for almost 30 years. They paid the wrong beneficiary. When I sent a letter explaining with beneficiary papers, they froze the account and holding over $220,000. Weekly calls, hundreds of hours on hold. They refuse to connect me with their legal department. Say they did not receive certified letters. No one will return any calls.

  Business response

  09/26/2022

  September 23, 2022

   

  Dear Ms. Sampson:  

  
  Why we’re contacting you 
  
  We write in response to your inquiry to the Better Business Bureau that is dated September 2, 2022.  You write to ask about your claim, , for federal benefits under the Federal Employees’ Group Life Insurance (FEGLI) Program following the September 23, 2021 death of ****** ** *******.   We have re-reviewed the claim and your submissions.  Our records indicate that, on or about November 17, 2021, our office paid you $229,200 plus applicable interest, in FEGLI benefits.  Under the applicable federal law, the remaining FEGLI proceeds above the amount you have already received are not payable to you.
  
  What you need to know
  The FEGLI program is governed by the Federal Employees’ Group Life Insurance Act, 5 U.S.C. §§8701 et seq. (FEGLIA”), the regulations at 5 C.F.R., Part 870 and the FEGLI Policy.  The Office of Federal Employees’ Group Life Insurance (“OFEGLI”) is an administrative unit of *******, responsible for administering the claims process of the FEGLI program.  All recordkeeping for the FEGLI program is done by agencies of the federal government for active employees or by the policyholder, the ****** ****** ****** ** ********* ********** (“***”) for compensationers and retired employees.
  
  The payment of FEGLI benefits is governed by federal law, namely the Federal Employees Group Life Insurance Act, 5 U.S.C. §  8701, et seq., the contract entered into (the FEGLI Contract) and the regulations promulgated thereunder by the ****** ****** ****** ** ********* ********** (***), and the *** FEGLI Handbook.  See e.g., the Code of Federal Regulations at 5 C.F.R. Part 870, and ****************************************************************************************  
  
  Congress set forth under FEGLIA, at 5 U.S.C. section 8705, for a beneficiary form to govern the payment of benefits, all that is required is that the beneficiary designation be in “a signed and witnessed writing received before death”.   FEGLIA states that FEGLI Benefits “shall be paid, on the establishment of a valid claim, to the person or persons surviving at the date of his death, in the following order of precedence: First, to the beneficiary or beneficiaries designated by the employee in a signed and witnessed writing received before death in the employing office or, if insured [as a retired federal employee] in the Office of Personnel Management.”  We paid you $229,200 based on an *** Standard Form (SF) 2823 dated May 24, 2019.  The May 24, 2019 SF 2823 form is a valid form because it satisfied the strict requirements of the federal statute; it was signed and witnessed and received by *** prior to the death of the insured.  Here, this Congressionally-mandated statutory requirement is met regardless of any pre-claim administrative letter.  OFEGLI is required to adjudicate claims pursuant to FEGLIA.  Accordingly, the form and the related federal statute govern the payment of the proceeds. 
  
  *** ******* completed beneficiary designation forms naming you and another party, and these forms met the requirements noted above.  Your portion of the insurance is $229,2000, which has been paid to you
  
  Please send any subsequent correspondence regarding this complaint to the following address:
  
  ****** ******, Compliance Consultant
  *******
  Corporate Customer Relations
  *** ****** ****
  *** *****
  Warwick RI  *****
  Fax:  ###-###-####
  Email:  *********************.com
  
  
  For more information on FEGLI policies, please visit the ****** ** ********* **********’s website
  at: ***.gov/life
  
  We’re here to help
  
  You can reach me by:
  
  Phone: ###-###-####
                                                                                                                                                            Sincerely,
  
  
                                                                                                                                                            Jessica T*****
                                                                                                                                                            Senior Case Management Specialist

• Initial Complaint

  03/02/2022

  Complaint Type:

  Order Issues

  Status:

  Resolved

  More info

  FEGLI is delaying payout of my portion of my fathers death benefit because they cant verify information of my estranged disabled sister. I told the case manager that she is a **** of the state and all I get is that we sent a letter. Why can you just pay the known beneficiary and work on finding the other? Why is my payment delayed by more than five months because youre trying to confirm information? There are two of us! Split the money and let me go in peace. But, no your employees tell me that I may need to wait a year, 2 years or even 4 years if my estranged sister doesnt file a claim? How is this even fair? I get a different answer and attitude every time I call OPM!

  Business response

  03/25/2022

  March 23, 2022 
  Dear *** *******, 
  Why we're contacting you 
  This is in response to your complainant regarding (your Complaint ID: ********) the life insurance benefits paid under the Federal Employee's Group Life Insurance ("FEGLI") due to the death of *** ******* **** received in this office on March 14, 2022 
  What you need to know 
  The payment of Federal Employee Group Life Insurance (FEGLI) benefits is governed by federal law, namely the Federal Employees Group Life Insurance Act, 5 U.S.C. $ 8701, et seq., the contract entered into the FEGLI Contract) and the regulations promulgated thereunder by the United States 
  'M FEGLI Handbook. See e.g., 5 C.F.R. Part 870, andhttps://www.opm.gov/healthcare-nsurance/life-insurance reference materials/handbook.pdf 
  The Office of Federal Employees Group Life Insurance (?FEGLI) is an administrative unit of *******, OFEGLI administers claims for FEGLIA benefits under a contract that OPM entered into pursuant to its authority under 5 U.S.C. $ 8709, and FEGLI claims are funded through the employees' Life Insurance Fund, 5 U.S.C. $ 8714, held at the United States Treasury, with amounts paid to the Fund under 5 U.S.C. $ 8707 and 5 U.S.C. $ 8708, 
  OFEGLI is required to adjudicate claims for benefits pursuant to FEGLIA and the regulations promulgated by OPM pursuant to the authority Congress granted it under FEGLIA and it must pay FEGLI benefits to the beneficiary according to federal law. FEGLIA, the FEGL Contract, and the regulations promulgated thereunder limit payment to the FEGLI benefits and interest as set out in the FEGLI Contract and prohibit claims seeking extra-contractual relief, punitive damages, and attorney's fees. 
  *******'s OFEGLI unit reviews death claims following receipt of documentation provided by the insured's employing agency and/or OPM. The payment of FEGL proceeds is governed by 5 U.S.C. S 8705, and OFEGLI is required to pay FEGLI benefits pursuant to the statute, 
  The statute provides that provisions of FEGLI shall "supersede and preempt any law of any state or political subdivision, thereof,' 5 U.S.C. Statute 8709(d)(1). "Thus, the provisions of the FEGLI act or policy are to take precedence over any potential beneficiary, regardless of whether that individual may have a valid claim under state law. 
  On September 15, 2021 our office received documentation from the Department of Veterans Administration. According to our records *** ***** passed away on October 13, 2020 and at that time he didn't have a beneficiary designation form on file. Therefore, the payments get paid according to the enclosed Order of Payment and when majority of the forms are received from entitled parties. 
  On October 11, 2021 ******* was paid out her portion of the basic life policy and on March 22, 2022 the accidental death benefit has also been paid out. There are no other benefits due to *** ******* *****. 
  Please address any subsequent correspondence regarding this matter to the following address: 
  ****** ******, Compliance Consultant ******* Corporate Customer Relations *** ****** **** *** Floor Warwick, RI ***** 
  We're here to help 
  For more information on FEGLI policies, please visit the Office of Personnel Management's website 
  
  If I am not available, you may speak with a Customer Service Representative Monday through Friday at 800-633-4542 from 8:30 am to 4:00p.m., Eastern Time. Please have your claim number available to receive faster service. 
  

  Sincerely, 
  Michelle K.
  Senior Case Management Specialist 

  Customer response

  03/29/2022

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  *************************
  

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