Life Insurance Beneficiaries in Pennsylvania Recover Millions - K-C Financial Group Insurance Services

The Pennsylvania Insurance Department issued the following news release:

The state Insurance Department has served as a lead in several multi-state examinations targeting the business practices of the life insurance industry. Approaching year end, more than 11,000 Pennsylvania policyholders will receive over $174 million in life insurance claim payments that were rightfully owed to them. "Pennsylvanians are finally receiving life insurance benefits that they were owed," Insurance Commissioner Michael Consedine said. "Life insurance companies are entering into settlement agreements that require them to reform the way they do business for the benefit of policyholders and beneficiaries here and across the country." Insurance regulators across the country focused on the life insurance industry's selective use of the Social Security Administration's Death Master File (DMF). Examinations revealed that while some companies properly used the DMF, others used it to terminate the payment of annuity benefits, but at the same time failed to trigger the payment of life insurance policy benefits. Moving forward, life insurance companies that have entered into settlement agreements will use the DMF to identify potentially unpaid insurance benefits and search for beneficiaries to whom benefits might be due. "Consumers seeking to determine whether a loved-one had life insurance are among the top-ten inquiries received at the department. Our efforts continue to result in companies making payment on life insurance benefits that are owed to consumers," Consedine added, also noting that the commonwealth is both recognized for its robust insurance industry as well as its continued leadership role in protecting consumers. To see copies of the settlement agreements, visit www.insurance.pa.gov and click on the "consumer protection" tab. Consumers with insurance questions should call the department's toll-free number at 877-881-6388.