Pennsylvania Enters Settlement with AIG
The Pennsylvania Insurance Department today announced that it has reached its fourth multi-state settlement agreement in connection with a series of investigations involving the claim settlement practices of life insurance companies.
"Today, American International Group has joined the ranks of the insurance companies that have agreed to step up their business practices by implementing more robust searches to locate life insurance beneficiaries," Commissioner Michael Consedine said. "We commend AIG's high level of cooperation and initiative in working to resolve this important issue and see that beneficiaries receive claim payments."
Under the terms of the settlement, AIG will use the Social Security Administration's Death Master File on a uniform basis to locate deceased policyholders and make payments to their beneficiaries. Pennsylvania was among the lead states in negotiating this settlement, which also requires AIG to pay a total of $11 million to be shared among those states participating in the settlement agreement.
AIG joins Nationwide, MetLife and Prudential in reaching national agreements through the National Association of Insurance Commissioner's Task Force formed to change the way that life insurance companies handle claims. These companies will now proactively search for deceased policyholders and beneficiaries, and must regularly report their compliance to regulators.
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