NEWARK, N.J. (CBSNewYork/AP) — Military families in New Jersey got the go ahead from a judge to pursue their lawsuit over death benefits for disabled veterans whose insurance lapsed.
The families say Prudential Insurance Co. failed to warn former soldiers their policies were expiring. The benefits can reach $400,000.
The lawsuit involves Army veterans William Hamilton and Carey Seymour. Both committed suicide after leaving the military in the past decade.
According to the suit, the men were suffering from post-traumatic stress disorder, which can be grounds for continued coverage.
In a ruling on Wednesday, U.S. District Judge Kevin McNulty denied Prudential’s motion to dismiss the case.
According to court papers, Prudential argued that Hamilton died years after his policy expired. The company claims to have sent Seymour three warning notices.
Newark-based Prudential administers the program for the Veterans Administration.
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