Letters to the editor

DEC 01, 2013
Insurers shouldn't have I was entertained by Mary Beth Franklin's blog “The rise of Social Security zombies” (InvestmentNews, Nov. 11) on the inaccuracy of the Death Master File. I have also been reading articles in other sources, including the one she referred to, “Why the dead got government checks” in The Washington Post. What is intriguing, not to say risible, about all this is that states are rapidly obligating life insurance companies to search the Death Master File for deceased policyholders, then search out the beneficiaries of those same policyholders and encourage them to file claims or else escheat the policy proceeds to the state. The industry is already arguing that this is creating a contract obligation that never existed and runs directly against the contract provision that benefits aren't payable until a claim is presented, and that these laws essentially are forcing insurers to create the claims themselves. Philosophically, I have no issue with beneficiaries' being located so they can receive death benefit proceeds, though one would hope that their loved ones kept decent records so that they could find this information in the first place. It is sad that this is being made out to be the job of the insurers. But given the incredible inaccuracies and inefficiencies of these records, it is ludicrous to make the Death Master File the be-all and end-all source for locating deceased policyholders. Jenifer Mercer-Klimowski Senior vice president, corporate counsel and secretary EMC National Life Co. Des Moines, Iowa Schorsch has brought fun back to the business It has been exciting to witness InvestmentNews chronicle the stunning rise of Nicholas Schorsch and his talented team. But make no mistake: You are actually recording history. One has to travel back decades to find Mr. Schorsch's equal in American capitalism. What makes his victories so remarkable is that in addition to creating wealth for millions of people, he has also completely transformed a segment of the marketplace — nontraded investments — for the better. Mr. Schorsch put smiles back on the faces of investors, financial advisers and, miraculously, even compliance personnel. It is fitting to acknowledge such a rare and unique talent. Many of us entered this business because we were told that it was fun. Thanks to Mr. Schorsch, many are beginning to believe that again. Daniel F. Harrington President Chartwell Investments Rumford, R.I.

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