Screen Readers Skip to Content

Life Insurance Payment Practices to be Reviewed

Published : 2011-07-10
Author : National Association of Insurance Commissioners

Synopsis* : Reviewing the full extent of the practices concerning life insurance and annuity industry.

Main Digest

Reviewing the full extent of the practices concerning life insurance and annuity industry.

In an attempt to provide assistance in coordinating the regulatory investigations that are related to the claim settlement practices of the life insurance companies, the state regulators have established a special task force by working through the National Association of Insurance Commissioners (NAIC).

The insurance regulators are focusing on some cases involving several large life insurance companies where the insurers failed to make payments to the beneficiaries for the death benefits under the life insurance policies.

Some of the alleged practices that have been taken into account includes, the insurers using the Death Master File of the Social Security Administration for terminating payments under the annuity contracts but at the same time not being able to utilize those information for facilitating the payments of the claims associated with life insurance policies.

The NAIC President and Iowa Insurance Commissioner Susan E. Voss in her statement talked about the commitment of the state regulators who are reviewing the full extent of the practices concerning life insurance and annuity industry.

She also added that the authority is willing to coordinate multi-state examinations in an attempt to use the state resources effectively to obtain a resolution for these matters. It is to be mentioned that the recently formed task force includes California, Florida (chair), Illinois, Iowa, Louisiana, New Hampshire, New Jersey, North Dakota, Pennsylvania and West Virginia.

To review the industry claims settlement practices, the NAIC task force is currently coordinating with the Florida Office of Insurance regulation and the California Department of Insurance.

You're reading Disabled World. Be sure to check out our homepage for further informative disability news, reviews, disability sports events, exclusive stories and how-tos. You can also find us on Twitter, Facebook, and LinkedIn.

Related Life Insurance Documents

*Disclaimer: Disabled World provides general information only. Materials presented are in no way meant to be a substitute for professional medical care by a qualified practitioner, nor should they be construed as such. Any 3rd party offering or advertising on disabled-world.com does not constitute endorsement by Disabled World. View our Advertising Policy for further information. Please report outdated or inaccurate information to us.

Cite Page: Journal: Disabled World. Language: English (U.S.). Author: National Association of Insurance Commissioners. Electronic Publication Date: 2011-07-10. Title: Life Insurance Payment Practices to be Reviewed, Source: <a href=https://www.disabled-world.com/disability/insurance/life/payment-practices.php>Life Insurance Payment Practices to be Reviewed</a>. Retrieved 2021-04-16, from https://www.disabled-world.com/disability/insurance/life/payment-practices.php - Reference: DW#474-8161.