Policyholder who died in 1970 finally gets death benefits — and so do 8,000 others

New York state orders insurers to track down unpaid claims; $52M forked over in total
APR 23, 2012
Life insurers paid $52.6 million in death benefits after New York's banking and insurance regulator forced the companies to use government data to identify cases where they hadn't paid claims. Almost 8,000 beneficiaries received the money, according to a statement today from the New York Department of Financial Services. Claims are being processed on an additional 27,889 polices for which matches were found. About 1 million policies need further checking as a result of the department's probe, according to the statement. Insurers have faced increased scrutiny from regulators in Florida, California and other states over unpaid death benefits. MetLife Inc. (MET), the largest U.S. life insurer, took a $117 million charge in the third quarter related to unpaid death benefits, while American International Group Inc. (AIG) added about $100 million to reserves in the second quarter after changing its process for determining when policyholders die. “Our findings clearly show that matching life insurance policies against a comprehensive list of recent deaths is essential to ensure that all beneficiaries receive the benefits they are owed,” Benjamin Lawsky, superintendent of the Department of Financial Services, said in the statement. The regulator said in July it was directing the 172 life insurers and fraternal benefit societies licensed in the state to use U.S. Social Security Administration death records or other data to identify deceased policyholders. The longest wait for a payment was connected to a policyholder who died in 1970, according to the statement. The largest award so far was $673,485. Insurers must provide interest on delayed payments, the department said. Data were released today as part of the regulator's first interim report on the benefits. --Bloomerg News-

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.