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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | July 9, 2013 03:22 PM |
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| From: | Representative Marguerite Quinn |
| To: | All House members |
| Subject: | Unclaimed Life Insurance Benefits |
| In an effort to ensure that beneficiaries are made aware of any unclaimed life insurance benefits, I am introducing legislation which will require insurance companies to compare in-force life insurance policies including retained asset accounts with the U.S. Social Security Death Master File and identify any matches. At present, insurance companies are not consistently utilizing the Death Master File to learn of policyholders’ deaths, potentially leaving beneficiaries of life insurance policies unaware of any proceeds. As a result, the funds remain with the insurance companies who are earning interest on the proceeds. What is even more disturbing, is the “asymmetrical” use of the Death Master File, with some companies using it to find deceased annuity benefits recipients, but not using the same database to track down information regarding deceased life insurance policyholders. My proposal would require insurance companies to periodically match Death Master File records, or an equally comprehensive service, with in-force life insurance policies including retained asset accounts. It also calls for timely efforts by an insurance company to confirm a policyholder’s death, locate any beneficiaries, and provide claims forms or instructions. In the event that benefits go unclaimed, the legislation provides clear procedures for life insurance companies to notify PA’s Treasury Department and escheat the funds, per our state’s unclaimed property laws. In addition, I want to point out that the Pennsylvania Insurance Department has been one of the lead states involved in a series of multi-state settlement agreements involving the claim settlement practices of life insurance companies such as MetLife, John Hancock, AIG, Nationwide and Prudential. While these settlements require the use of the Death Master File by these insurers, my legislation would establish in law the consistent practice of identifying deceased policyholders and of notifying their beneficiaries in a timely manner. The legislation would apply to all insurance companies selling life insurance policies in the state. |
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Introduced as HB1937