Delaware Reaches Settlement Agreements in Death Master File Cases Totaling $320,000
January 7, 2014 by Thomas Harman
DOVER, Del. – The Delaware Department of Insurance has reached settlement agreements totaling more than $320,000 with three companies concerning payouts of proceeds owed in life insurance policies, annuity contracts and retained asset accounts.
The agreements between companies and state regulatory agencies are related to multistate examinations of the 40 largest life insurers regarding timely payment of proceeds to beneficiaries of life insurance policies and annuities, the probe centering on the companies’ use of the Social Security Administration’s Death Master File database. Delaware is among the latest of states to announce it has signed onto the agreement.
Of the three, the largest settlement was reached with the New York Life Insurance Co., New York Life Insurance and Annuity Corp., and New York Life Insurance Corporation of Arizona, for $281,821. In October, New York Life agreed to pay $15 million to six lead states as part of the Death Master File settlements. When the settlement was announced, New York Life called on regulators to craft uniform national standards for companies to follow when conducting searches on unclaimed property using the DMF and other tools (Best’s News Service, Oct. 24, 2013). The company offered no comment on Dec. 31.
Other settlement agreements have been reached with the Midland National Life Insurance Co. and the North American Company for Life and Health Insurance for $25,782.62 and with the Aviva Life & Annuity Co. and the Aviva Life & Annuity Company of New York for $12,724.67. In November, Midland National Life Insurance Co. agreed to pay states $3.3 million to settle market conduct examinations (Best’s News Service, Nov. 25, 2013) and Aviva Life & Annuity Co. and Aviva Life & Annuity Company of New York, both formerly part of Aviva USA, agreed to pay $4 million (Best’s News Service, Nov. 21, 2013).
New York Life Insurance Co. currently has a Best’s Financial Strength Rating of A++ (Superior), the Midland National Life Insurance Co., based in West Des Moines, Iowa, currently has a Best’s Financial Strength Rating of A+ (Superior) and Aviva Life and Annuity Co. currently has a Best’s Financial Strength Rating of B++ (Good).
(By Thomas Harman, associate editor, BestWeek: Tom.Harman@ambest.com)
