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FOR IMMEDIATE RELEASE

REGULATORS TO REVIEW LIFE INSURANCE PAYMENT PRACTICES

WASHINGTON, D.C. (May 17, 2011) — Working through the National Association of Insurance Commissioners (NAIC), state regulators have formed a special task force to help coordinate regulatory investigations involving the claim settlement practices of life insurance companies. Specifically, insurance regulators have been investigating a number of large life insurance companies regarding the possible failure to pay death benefits to beneficiaries of life insurance policies. The alleged practices include use of the Social Security Administration’s Death Master File by insurers for purposes of terminating payments under annuity contracts, but failing to use this same information to facilitate the payment of claims on life insurance policies.

“ State regulators are committed to reviewing the full extent of these practices in the life insurance and annuity industry,” said Susan E. Voss, NAIC President and Iowa Insurance Commissioner. “ We intend to coordinate multi-state examinations to effectively utilize our state resources in achieving resolution of these issues.”

Members of the newly created task force include California, Florida (chair), Illinois, Iowa, Louisiana, New Hampshire, New Jersey, North Dakota, Pennsylvania and West Virginia.

To date, the NAIC task force is coordinating with both the Florida Office of Insurance Regulation and the California Department of Insurance to conduct two joint public hearings to review industry claims settlement practices. Below is information on each scheduled hearing:

California Department of Insurance

WHEN:
                     
HEARING CONCLUDED May 23, 2011
Click here to view video of hearing

WHERE:                  
Secretary of State Building
First Floor Auditorium
1500 11th St.
Sacramento, CA

Contact:                    
California Department of Insurance
Ioannis Kazanis
916-492-3566

State Controller’ s Office
Jacob Roper 
916-445-2636

Florida Office of Insurance Regulation

WHEN:                     
HEARING CONCLUDED May 19, 2011
Click here to view video of hearing
                            
WHERE:                  
Pat Thomas Committee Room
412 Knott Building
Tallahassee, FL
                    
Contact:                    
Jack McDermott                                
850-413-2515                                                                        
Jack.McDermott@floir.com  

Brittany Perez
850-413-2515
Brittany.Perez@floir.com                           

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About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

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