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FORT DUCHESNE, Uintah County — The Ute Indian Tribe of the Uintah and Ouray Reservation is urging Utah officials to investigate several insurance companies for what it claims is a "fraudulent scheme" that left hundreds of tribal members without life insurance benefits.
The tribe filed a complaint with the Utah Insurance Department last week against life insurance companies whose practices the tribe says are unfair, deceptive and have caused tribal members' insurance policies to lapse without their knowledge and through no fault of their own.
The tribe specifically named Midland National Life Insurance and an agent who the tribe alleges sold policies to hundreds, if not thousands of tribal members. Midland National Life Insurance did not respond to KSL.com's request for comment.
The Ute Tribe said members made payments on these policies for years, or even decades; but upon making a claim, they discovered they no longer had insurance benefits.
"This is directly attributable to the insurance companies who turn a blind eye to their agents' misconduct, ignore legal requirements to maintain insurance records, and refuse to provide their policyholders' information even when directly asked to do so," the tribe said in a statement. "This complaint has the potential to reveal more about the widespread fraudulent scheme in which life insurance carriers target sales of their questionable policies to low-socioeconomic individuals in Indian Country and other vulnerable communities,"
The Ute Tribe said it provided the Utah Insurance Department, which aims to protect policyholders, with "overwhelming documentary evidence" of the insurance companies' practices.
"We will take all necessary steps to hold these insurance companies accountable for their predatory conduct which has defrauded our tribal members," Ute Indian Tribe Business Committee Chairman Julius T. Murray III said. "It is particularly deplorable that these bad actors have targeted and taken money from tribal elders who relied on these policies to take care of family needs after their deaths."
A spokesperson for the Utah Insurance Department confirmed the department received the Ute Tribe's complaint and said it is actively looking into it.
"The insurance department investigates every complaint it receives but unfortunately cannot comment on an ongoing investigation," the department said in a statement to KSL.com. "If an investigation uncovers evidence of wrongdoing, the department can take various types of administrative action against its licensees."
