The New York Life Insurance Company has reached a $15 million settlement with six states, including Illinois.
The lawsuit was filed over the company's use of the Social Security Administration's Death Master File (DMF) after a multi-state market examination of the country's forty largest insurers regarding timely payments to beneficiaries of life insurance policies. The lead state of the investigation was California and regulators from Florida, Illinois, New Hampshire, North Dakota, and Pennsylvania were also involved.
Under the settlement, New York Life will reform its practices to ensure a more efficient search for beneficiaries of both the company's in-force life insurance policies and annuities through the DMF. All of its insureds and annuitants will be regularly matched against the DMF to quickly identify when someone has died and to find and pay beneficiaries.
Over 30 market examinations are still ongoing and those of eight of the nation's ten largest insurers have been resolved. You can find a copy of the settlement with New York Life at insurance.illinois.gov/Home/ImpLinks.asp.
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