Life Insurance Settlement Information

Prudential Insurance Company of America

On February 2, 2012, The Florida Office of Insurance Regulation (Office) along with the Department of Financial Services (DFS) and the Office of the Attorney General (AG) announced a multi-million dollar settlement agreement with Prudential Insurance Company of America and its affiliates (Prudential). By entering this agreement, Prudential is taking a leadership role in the industry to invest resources into efforts to locate beneficiaries of life insurance policies when the insured has died but a claim has not been received.

Life insurance companies can find out that an insured has died by comparing policyholder records to the Social Security Administration’s Death Master List. Many companies have used this method to stop annuity payments, but have not used the same method to make life insurance payments.

For several years, Prudential has used the Death Master List to make life insurance payments when it has found that an annuity holder has died or when it has a precise match to name, social security number, and date of birth. Under this agreement, Prudential has committed to building a system to match inexact data, to search for beneficiaries if they find a match, and to do these matches more often.

If you feel you or someone you know is a victim of this practice please contact the Florida Department of Financial Services, Insurance Helpline at 1-877-MY-FL-CFO (693-5236) or (850) 413-3089 for more information.

Have Questions? View a list of frequently asked questions and answers.

MetLife Insurance Multi-Agency Agreement Summary

On April 23, 2012, the Florida Office of Insurance Regulation along with the Florida Department of Financial Services and the Florida Office of the Attorney General reached an agreement with nine Metropolitan Life (MetLife) insurance companies in a joint investigation coordinated with the insurance departments of California, Pennsylvania, New Hampshire and North Dakota. A related agreement is being signed by MetLife and Unclaimed Property officials in 30 states. The agreement pertains to the location of life and annuity beneficiaries and the reporting of unclaimed property.

By entering this agreement, MetLife agreed to adopt business reforms strengthening efforts to locate policyholders and beneficiaries within 120 days of an insured’s death. If, within one year, an insured or beneficiary cannot be found, MetLife will report and pay the death benefit or annuity payment to the appropriate unclaimed property department. MetLife also agreed to search for insureds or beneficiaries of low-value or industrial life insurance policies that were sold in the early 1900’s up to 1964. These industrial policies alone are estimated to include almost 15,000 Florida policyholders.

The practice addressed in this agreement involves life insurance companies determining an insured has died by comparing policyholder records to the Death Master File. Many companies have used this method to stop annuity payments, but have not used the same method to issue life insurance payments.

If there is an unclaimed MetLife life insurance policy in your family, visit www.metlife.com/policyfinder.

John Hancock Life Insurance

On May 18, 2011, the Florida Office of Insurance Regulation announced a multi-agency, multi-million-dollar settlement agreement with John Hancock Life Insurance Company. This settlement concludes the first investigation of an industry practice involving the selective use of the Death Master File from the U.S. Social Security Administration. John Hancock has agreed to revise its business practices related to unclaimed property for life insurance products and to revise its use of the U.S. Social Security Administration’s Death Master File.

The investigation found that John Hancock, upon learning of a policyholder’s death, discontinued company payments of annuity benefits. However, the company did not use the list to stop making deductions for life insurance payments or other automatic transfers.

The insurance practice resulted in continued payment deductions from the accounts of deceased policyholders for payment of premiums. Further, beneficiaries did not receive the claim payments, nor were the accounts remitted to the State of Florida’s Bureau of Unclaimed Property, as required by law.

Following the initiation of this investigation, John Hancock searched for and paid thousands of beneficiaries, resulting in the payout of millions of dollars nationwide in previously unpaid death benefits. Authorities anticipate Hancock will ultimately pay tens of millions of dollars to tens of thousands of beneficiaries nationwide.

If you feel you or someone you know is a victim of this practice please contact the Florida Department of Financial Services, Insurance Helpline at 1-877-MY-FL-CFO (693-5236) or (850) 413-3089 for more information.

Have Questions? View a list of frequently asked questions and answers.