'GMA' Helps 7-Eleven Employee's Family Get Life Insurance After 9-Month Battle

According to Sandy Praeger, former president of the National Association of Insurance Commissioners, third-party insurance providers have little legal incentive to care.

Sarwara Faruque before being diagnosed with colon cancer. For seven years Faruque worked for 7-Eleven, making regular payments into a life insurance policy offered by 7-Eleven.

(ABC News)

The federal Employment Retirement Income Security Act (ERISA) shields companies like 7-Eleven and their third-party administrators from punitive damages in lawsuits.

"Their only incentive would be wanting to keep good employees. They are insulated," Praeger said. "The ERISA pre-emption does insulate them from really effective regulation."

That regulation cannot come, Praeger said, unless far more employees complain when they believe they have been wronged.

"Establishing a pattern relies on employees complaining, and often times they don't," Praeger said. "They don't get the benefit because they just, they throw up their hands and say, 'Well, I have no recourse.'"

Because they did not throw up their hands, the Faruques got a different end to their story.

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After "Good Morning America" contacted 7-Eleven, the company sent a statement acknowledging the mistake and apologized for the miscommunication and misunderstandings.

Less than a week later the Faruques received a check for $45,500 and Sarwara Faruque's kids' collegiate dreams were reborn. But according to Tanija Faruque, her mother deserved better from 7-Eleven.

"My mother was a very hard worker," she said. "Very loyal, very honest. You know, after she died, this is how they repay her? No."

Tips to Avoid Insurance Troubles

If dealing with a third party, do not assume they understand how the policy works.

Demand a copy of the policy and get an application form so you can apply for your benefits.

Make a request to speak to the insurance company directly.

If all else fails, consider getting a good attorney to cut through the red tape.