Minnesota insurance regulators uncovered $174 million in unpaid benefits in its examination of 16 insurance companies. The companies are required to settle their unpaid benefits from as far back as 1990 and reform their claims practices.
Commerce Commissioner Mike Rothman announced Feb. 16 that it has reached settlement agreements with three life insurance companies—
AXA Equitable Life Insurance Company, Jackson National Life Insurance Company, and New York Life Insurance Company—that owed money to consumers for unpaid insurance policies, annuity contracts and retain asset accounts.
Similar agreements were reached with nine other life insurance companies. John Hancock, Lincoln,
MetLife, Prudential, Transamerica, and Voya (ING) were among those approached by regulators to settle their unpaid benefits.
The Minnesota Commerce Department continues to investigate claims and payment practices at seven other life insurance companies.
“Minnesota consumers have the right to the unpaid insurance money due to them,” said Rothman. “Under the settlements, these life insurance companies must honor their payment obligations to our consumers.”
Due to the agreements and ongoing assessments, at least $143 million in claims owed on Minnesota policies are being paid directly to beneficiaries. An additional $31 million owed to beneficiaries who cannot be located will be transferred instead to unclaimed property programs in and around the state—in this arrangement, the property programs will hold the funds in trust until claimed by their rightful owners.
The nine insurance companies that already had settlement agreements made a total of $12.6 million in settlement payments to the state.
“I encourage Minnesotans to make sure their life insurance companies have up-to-date contact information for themselves as well as their beneficiaries,” Rothman urged. “Many people are never told they are named as beneficiaries in life insurance policies, so they often have no idea an insurance payment is owed to them.”
