Attorney General has said that he has started the process of an investigation to look into an insurance fraud. The same is said to have been done in the cases when the insurance claims are paid once the policyholders die.

Andrew Cuomo is the Attorney General who has started the whole process and said that his office has served subpoenas on Prudential Financial, Inc. and MetLife, Inc. as part of the probe. The two insurance companies are said to produce all the information regarding their insurance policies and the method they use to serve the claims.

Cuomo said to media that his office is serving the practices that some insurance companies are following in order to retain their life insurance beneficiaries' funds in company-controlled accounts.

These companies are supposed to pay lump sums to the beneficiaries but are not doing so in the act defeating the purpose for which life insurance is done.

Because of the late and unfulfilled claim allotments, the beneficiaries are paid lower yields. And since the funds, that are maintained by the insurance companies are not backed by the Federal government it means that they are very vulnerable and risky.