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Naughty Walmart!

http://consumerist.com/2007/07/walmart-took-secret-life-insurance-policies-out-on-employees-collected-after-their-death.html

and

http://www.wakeupwalmart.com/facts/index_alt1.html

South Africans are all interested in Walmart now that they're about to take over one of our biggest local retailers, MassMart.

Personally, I think it's a match made in heaven, both companies will be able to teach each other dirty tricks.
Permalink Bluebeard 
September 30th, 2010 4:50am
Oh those insurance policies are taken out by lots of companies on their employees, especially the ones in positions where they tend to die young.

It's totally amazing too. 30 years ago, a benefit of working for a company is they would take out a plan to help your widow if you died.

Now they say "Why should that fucking bitch get the money when we could get it?"
Permalink Weevil 
September 30th, 2010 5:19am
The last one is funny. Guy works for bank. They take out 1.6 million policy. He gets brain cancer. They find out about this, do an analysis of his finances, FIRE HIM, revoking his insurance policy so he can't get treatment, but they KEEP the life insurance. He then dies due to lack of treatment because he was fired and then they collect the $1.6 million, and leave his widow with bankruptcy from medical bills.
Permalink Weevil 
September 30th, 2010 5:24am
Here is a partial list of companies that are known to maintain dead peasant policies on employees likely to die.

source: http://deadpeasantinsurance.com/which-employers-bought-policies-on-the-lives-of-employees/

ADAC Laboratories
Advanced Telecommunication Corp.
Aeroquip Vickers Inc.
Alabama Power Co.
Alfa Corp.
Allegheny Technologies Inc.
Allergan Inc.
Allfirst Financial Inc.
American Business Products, Inc.
American Electric Power
American Express Co.
American Greetings Corp.
American Management Systems Inc.
American Seafoods Group LLC
Ameritech Corp.
Amerus Group Co.
Anadarko Petroleum Corporation
Appalachian Power Co.
Arch Chemical
Aristech Chemical Corp.
AT&T Communications
Atlantic Richfield Co.
Avery Dennison Corp
Avon Products Inc.
B. F. Goodrich Company
Ball Corporation
Bank Boston
Bank Of America
Bank One Corp.
Barnett Banks Inc.
Bassett Furniture Industries Inc.
Be Aerospace Inc.
Bear Stearns Companies
Bellsouth Corporation
Boise Cascade Corp.
Boston Company
Boston Federal
Bristol-Myers Squibb Company
Camelot Music, Inc.
Carolina Power & Light Co.
Carpenter Technology Corp.
Catskill Financial Corp.
Central Power & Light Co.
Ch2m Hill Companies Ltd.
Charming Shoppes, Inc.
Checkfree Corp.
Chemical Banking Corporation
Citibank, N.A.
Citizens Bank
Clark Inc.
Clorox Company
CNF Inc.
Coca-Cola Company
Columbus Southern Power Co.
Commercial Intertech Corp.
Compass Bank (Florida & Alabama)
Computer Technology Associates Inc.
Consolidated Natural Gas Co.
Consolidated Rail Corporation
Cox Enterprises, Inc.
CTA Inc.
Cymer Inc.
Diamond Shamrock Inc.
Diebold Inc.
Dime Bancorp Inc.
Dow Chemical
Earle M. Jorgensen Co.
Eastman Kodak Company
Eaton Corp.
ECC Capital Corp.
Enserch Corp.
F&M Bancorp
FiberMark Inc.
Figgie International Inc.
Fina Oil & Chemical Company
First Bank System Inc.
First Commonwealth
First Midwest Bancorp Inc.
Fleet Bank
FleetBoston Financial Corp.
Flightsafety International Inc.
Frontier Bank
Fulton Financial Corp.
GATX Corporation
Georgia Power Co.
GNC Corp.
Great Plains Energy Inc.
GTE Corporation
Gulf Power Co.
HCR Manor Care Inc
Hechinger Company
Heritage Commerce Corp.
Herman Miller Inc.
Hershey Foods Corporation
Hillenbrand Industries, Inc.
Hosiery Corporation of America
Houghton Mifflin
Household Finance
Hovnanian Enterprises Inc.
Hughes Supply Inc
ICI Americas, Inc.
Idaho Power Company
IKON Office Solutions Inc.
Indiana Michigan Power Co.
Integra Bank Corp.
Intermark Inc.
Iowa First Bancshares Corp.
Iroquois Bancorp Inc.
J Jill Group Inc.
JP Morgan Chase & Co.
Kansas City Power & Light
Kansas Gas & Electric Co.
Keithley Instruments Inc.
Kentucky Power Co.
Keycorp Ohio
Kimberly Clark
Korn Ferry International
Laser Master Int’l. Inc.
Linens N Things Inc.
LKQ Corp.
Louisiana Pacific Corp.
Manor Care Inc.
Marriott International Inc.
McDonnell Douglas Corp.
Media General Inc.
Medicalcontrol Inc.
Menasha Corporation
MidAmerican Energy Co.
Miix Group Inc.
Mississippi Power Co.
MNC Financial Inc.
Mueller Industries Inc.
National City Corporation
NationsBank
Nestle Enterprises
Norfolk Southern Corp.
Norfolk Southern Railway Co.
Northern States Power Co.
Ohio Power Co.
Old National
Olin Corporation
Owens & Minor Inc.
PacifiCorp
Panera Bread Co.
Panhandle Eastern Pipe Line Company
Parker Hannifin Corp.
Penn Treaty American Corp.
Penns Woods Bancorp Inc.
Phibro Animal Health Corp.
Philipp Brothers Chemicals Inc.
Phoenix Companies Inc.
Pinnacle Financial Services Inc.
Portland General Electric
Potlatch Corporation
PPG Industries
Procter & Gamble Company
PSS World Medical Inc.
Public Service Co. of New Mexico
Public Service Co. of Oklahoma
Public Service Enterprise Group
Questech Inc.
R. R. Donnelley & Sons Company
Ruddick Corp.
Ryder System Inc.
Sallie Mae (Stud Ln Mktg Assoc.)
Savannah Electric & Power Co.
Sequa Corp.
Service Merchandise Co., Inc.
Shearson Mortgage
Sherwin-Williams
Sky Chefs
Smart & Final Inc.
Smith Barney
Sonoco Products Co.
Southwest Bank
Southwest Water Co.
Southwestern Bell Corp.
Southwestern Electric Power Co.
Southwestern Public Service Co.
Star Banc Corp.
Stauffer Management Company
Steelcase Inc.
Sturgis Bancorp Inc.
Summit Bank of N.J.
Swank, Inc.
Tellabs Inc.
Tenet Healthcare Corp.
Texas Eastern Transmission Corp.
Tompkins Trustco Inc.
TXU Corp.
TYCO International
UniFirst Corp.
Union Bank
United National Bancorp
Urocor Inc.
Vineyard National Bancorp
W. R. Grace & Company
Wachovia Corporation
Walgreen Company
Wal-Mart Stores
Walt Disney
Wang’s International, Inc.
Wells Fargo, N.A.
West Coast Bancorp
West Texas Utilities Co.
Westar Energy Inc.
Western Aire Chef Inc
Western Resources, Inc.
Westpoint Pepperell
Winn Dixie
Winnebago Industries Inc.
Woolworth Corporation
Xcel Energy Inc.
York Water Co.
Zale Corp.
Permalink Weevil 
September 30th, 2010 5:40am
Interesting facts.

* 20% of all life insurance policies are dead peasant policies

* Companies pay $8 billion per year in premiums for the policies

* Companies receive $9 billion in federal tax breaks because they have taken out the policies, which are considered benefits.

* In addition, companies receive the death benefits on top of this, which is 100% tax free.

* In addition, companies can borrow money at very low interest against the policies since they are whole life policies.
Permalink Weevil 
September 30th, 2010 5:44am
Bah.

Companies have been doing this for ages.

Most of the complaints are from people who do not understand the difference between Insurance and Life Assurance.

Actuarially, the two are different. One is protection against loss from an even that might not happen. The other is a bet on a certain event. In the latter, the insurance firm is betting that you will not die soon, and you are betting that you will.

Technically, anyone can take out a life assurance policy on anyone else. If you really wanted to, I am sure you could find an life insurance company that will give you a policy on the president. You cannot however, take out an insurance policy on the flooding of Muppet's house.
Permalink GTRSM 
September 30th, 2010 11:31am
Seriously though, people need to get over this one.

Taking cover on the death of one person does not in any way hamper their ability to cover themselves. That's why the only upper limit on the amount of cover, is really the amount that as many insurance companies as you are able to find will give you.

Another case of people with nothing better to do complaining about something that is not a problem at all.
Permalink GTRSM 
September 30th, 2010 11:33am
Uhm, I vehemently disagree with your assessment and wish to fling fecal matter your general direction due to the shortsightedness of it.

It's a rather massive conflict of interest for people to benefit from others' deaths.
Permalink JoC 
September 30th, 2010 12:03pm
Yeah, this is not so innocuous because the companies can (and do), legally, force the employee to die. Example already given. Man gets brain cancer on job so company deliberately fires him in order to cancel his insurance so he will die and they can collect.
Permalink Weevil 
September 30th, 2010 12:15pm
It's also a tax problem because the deductions were enacted with the idea that employers were providing a benefit to the employee and not a way to profit in three ways, plus be motivated to not provide good health insurance policies for low level employees, by buying these policies.
Permalink Weevil 
September 30th, 2010 12:16pm
Weevil, you are being extremely obtuse.

Anything, including good things, can and are abused. That is still no reason to condemn them outright.

Life assuarance is not, at least actuarially, a moral decision. It is a bet about a certain event. Death. You will die at some point. The question is when.

Tax breaks for investment in one class of financial instrument or another, or for one investment bet or another, are a political matter. It is really should not come into play here.

Life insuarance is not free, and in many cases is not cheap. If you feel your employers are working you into the ground just to collect on your life insuarance, then either leave, or be so loaded up yourself that your widow and kids won't end up in the poor house.
Permalink GTRsM 
September 30th, 2010 7:37pm
Given that most insuarance companies will not issue a policy without a visit to a physician, the peasants are complicit in the taking out of these life policies.

If you don't want your employers taking out a policy on your ass, don't go and see the doctor.
Permalink GTRsM 
September 30th, 2010 7:39pm
Should not be discussed? Tax breaks for one thing mean higher taxes for others. My taxes are subsidizing the cost of insurance policies on poor workers with lousy benefits who are fired when they get sick so they die and the company profits.

It's amazing that people think that is OK, but will complain if some preacher advocates a political candidate.
Permalink Weevil 
September 30th, 2010 7:40pm
While we are at it, there is nothing stopping the peasants from taking out policies on the 'masters'.

Good payouts once the revolution comes and the guillotines are dusted and oiled again.

There is no issue here. Stop complaining about a matter that is not a problem.
Permalink GTRsM 
September 30th, 2010 7:41pm
"will not issue a policy without a visit to a physician"

Shit, could you at least study up on the topic before spouting off an ignorant and wrong opinion?

No doctor visits are needed.
Permalink Weevil 
September 30th, 2010 7:41pm
"there is nothing stopping the peasants"

Peasants don't get a tax break for it, they can't take out the policy because they are not a corporation, and they can't force their boss's insurance to be cancelled when they feel he has gotten sick.

Not the same at all and very disingenuous to say so.
Permalink Weevil 
September 30th, 2010 7:42pm
#No doctor visits are needed.
True for some insurers in some industries/age brackets/demographics. Not all cases though. You are just an actuarially computed risk after all.

Brilliant. See my post above. Take out a policy on the boss. Or cover yourself a lot more.

If you really want to fuck the bosses over, don't die. Win win.
Permalink GTRsM 
September 30th, 2010 7:44pm
You do not have to be a corporation. Anyone can take out life assuarance on any other life. Again, you are betting on a certain event.

Life Assuarance != General Insurance. In most jurisdictions around the globe, you do not have to prove 'interest'. Like I pointed out, I could take out a life insurance policy on your life Weevil (because if you croaked, I would miss your banter), but I could not take out a policy on your house flooding (preventing you from posting here).

Grrrrrrrrrrr
Permalink GTRsM 
September 30th, 2010 7:47pm
About the tax breaks, I am opposed to *ALL* tax breaks. No exceptions. That though is another matter altogether. Nothing good ever comes out of having tax breaks.
Permalink GTRsM 
September 30th, 2010 7:48pm
hmmm how did BP miss this opportunity?
Permalink Send private email cbmc64 
September 30th, 2010 8:11pm

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