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This is a question that many people ask on a daily basis…
Settlements between state regulators and the insurance industry are calling into question whether life insurers are doing enough to make sure they pay unclaimed death benefits and whether they follow the “best practice” doctrines corporations so often preach.
Wrapping up a lengthy investigation into unclaimed benefits, Benjamin M. Lawsky, superintendent of the New York State Department of Financial Services (DFS), said that insurers should have used more up-to-date databases to cross-check life insurance policies, annuity contracts and retained asset accounts with insurers’ internal files.
“Best practices should have required that insurers utilizing the Social Security Administration Death Master File or a database that is at least as comprehensive, to determine if any death benefit payments were due a as a result of unreported claims,” Lawsky said in a letter.
To read more on this great article (cited from):
http://insurancenewsnet.com/innarticle/2013/07/31/are-insurers-doing-enough-to-pay-claims-a-389010.html?topnews#.UgUOLpK1Ff8