Sad Story Of A Brit War-Widow's American Insurer's Insult ...

Professional peacekeeper-soldier, kindred spirit and civilised blog-mate, markfromireland sent us this.

An American company contracted to provide life insurance to British soldiers serving in Iraq is refusing to accept liability for the death of a military police officer because it does not accept that he died in service.

Captain Ken Masters, who led investigations into allegations of abuse against British troops in Basra, took his own life in October 2005 after the pressures of his position became too much for him. The coroner who presided over his inquest has asked the MoD to improve systems to deal with the kind of psychological damage he suffered.

But AIG, which by arrangement with the Army receives payments direct from soldiers' salaries, does not include psychological harm within its definition of "bodily injury" covered by its policy and has now told Captain Masters' widow, Alison, that she has no entitlement.

When we read the report in The Independent we were both shocked & sickened, and wondered what sort of shitty insurers this AIG, US crew were.

So we did a little digging - and first of all, found the following.

AIG settles fraud case for $1.6 bln

Thu Feb 9, 2006 12:56 PM ET
By Ed Leefeldt

NEW YORK (Reuters) - American International Group Inc., the world's largest insurer by market value, on Thursday settled federal and state charges of fraud, bid-rigging and improper accounting for $1.64 billion.

The widely anticipated settlement ends a long-running investigation of the company by New York Attorney General Eliot Spitzer and State Insurance Superintendent Howard Mills, along with federal authorities led by the U.S Securities and Exchange Commission.

But it does not resolve pending cases against former AIG Chief Executive Maurice "Hank" Greenberg and former Chief Financial Officer Howard Smith, both of whom left AIG just before the charges were announced last year.

In settling, Spitzer pointed the finger directly at Greenberg and Smith, who have denied they did anything wrong.

"There are some who continue to deny there was any wrongdoing at the company," said Spitzer in an interview in New York City. "I think the facts laid out today are overwhelming in establishing that from the highest levels of AIG there was an intent to misrepresent the financial condition of the company." Spitzer said "transactions were entered into that were false, and there were flagrant violations of state and federal law designed to misrepresent the financial condition of the company."

When we decided we'd dig deeper, we unearthed what's underneath.

On Monday, the Wall Street Journal and CNBC reported that Greenberg, 79, would step down as Chief Executive Officer of AIG this week, but stay on as non-executive chairman.

The reports came as AIG was under regulatory scrutiny. New York Attorney General Eliot Spitzer is investigating allegations of bid-rigging and fraud in the industry, and two former AIG executives have pleaded guilty in the probe.

AIG said its board has taken no action and declined further comment about Greenberg, who in recent years has become unofficial leader of the industry.

His preeminence was sealed in 2001, as AIG pulled off one of the biggest insurance acquisitions ever, buying life insurer American General for $23 billion.

Greenberg's personal power came to the fore in the days after Sept. 11, 2001, as he led insurers to the White House to lobby President George W. Bush for federal support on future terror insurance claims. There was never any debate on who would lead the group.

The 5' 6" New Yorker reached the top with a steely glare and a soldier's vocabulary, inspiring fear and respect in equal measure.

Known to all as "Hank", after baseball Hall of Famer Hank Greenberg, he revolutionized insurance by insisting on profits from selling policies, rather than relying on investment returns, like other firms.

He did it with an iron rule, barking at colleagues or calling them on Christmas day to query figures.

(snip)

FIERY TONGUE

Greenberg didn't charm his way to the top.

His has a military discipline and intimidates employees, competitors, analysts and the media.

(snip)

Journalists are generally below Greenberg's radar, but they get short shrift if they ask the wrong questions. "This will be the last time you and I ever speak," Greenberg told a London journalist, warning him not to ask questions about his family.

See the story yourself by scrolling down to headline #3 at this link.

Well, we don't know about you - but you can bet your life that we won't be giving any insurance business to this bunch of b******s.

Never. Ever.

To help you recognise him should you ever run across him (perhaps whilst driving your car - at speed), looking suitably smug below is the biggest 'boss of bosses' belonging to the above bunch - old Wank Hank Greenberg himself.

Incidentally, as almost all actuaries would agree -- according to current life insurance mortality tables, this old ogre could soon be deceased.

But we bet that as soon as he is, his own family's claim is paid out in full -- and paid out pretty pronto.



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