Topic: Life Insurance & Annuities

This updates our March 24, 2010 blog posting.  The National Association of Insurance Commissioners (“NAIC”) issued a press release on October 12, 2011 announcing, among other things, adoption of a bulletin (the “Bulletin”) regarding stranger originated annuity (“STOA”) transactions. STOA transactions involve a producer and/or investor offering a third party a fee for the use of the individual’s identity as the annuitant in an annuity. 

This updates our June 22, 2011 blog posting.

At its July 15, 2011 meeting, the National Conference of Insurance Legislators (“NCOIL”) Life Insurance and Financial Planning Committee resolved to pursue amendments to the Beneficiaries’ Bill of Rights Model Act relating to payment of life insurance proceeds to beneficiaries. 

This updates our June 14 blog post.

The National Conference of Insurance Legislators (“NCOIL”) has proposed amendments to the Beneficiaries’ Bill of Rights Model Act relating to payment of life insurance proceeds to beneficiaries. 

As part of a coordinated national investigation, California state insurance regulators held a hearing on May 23, 2011 to probe one particular life insurer’s claims settlement practices. Just as in the Florida hearing described in our May 20, 2011 advisory, at issue was the life insurer’s use of the Social Security Death Master File (DMF), a publically-available database containing information on deceased Americans. 

This is an update as to the efforts of various state insurance regulators, and attorneys general, to coordinate an investigation of life insurance claims settlement practices. Specifically, insurance regulators have been investigating a number of large life insurance companies regarding the purported failure to pay, or undue delay in remittance of, death benefits to beneficiaries of life insurance and allied products. 

Numerous states are currently examining certain claims procedures of life insurance companies.  In its most basic form, life insurance is designed to provide a death benefit to a named beneficiary upon the death of the insured life.  State law generally requires that carriers disburse death benefits to the named beneficiary in a timely manner, or, if the beneficiary cannot be located after due diligence, submit the payment to the state under the applicable escheat law.  State regulators are currently examining the manner in which life insurance companies investigate and determine whether a particular insured is deceased, and locate beneficiaries.