Insurance Commissioner Dave Jones Announces $1.7 Million in Settlement Payments Aid to California by Insurers
News: 2013 Press Release
SACRAMENTO - Insurance Commissioner Dave Jones announced today that the California Department of Insurance (CDI) has received payments totaling $1.7 million from two additional insurance companies that have entered settlements with the Department as a result of its investigation into their use of the "Death Master" database.
"These settlements are another important step in our effort to reform industry practices regarding the use of the Social Security Death Master File database," said Commissioner Jones. "As other insurers have done, AIG and Nationwide Insurance Companies were found to have selectively used the Death Master File database to cut off payments to annuity holders, but did not use that database to identify deceased life insurance policyholders and pay their beneficiaries. These settlements end that practice. I strongly encourage other insurers to come forward and enter similar agreements. Insurers should pay policy proceeds to beneficiaries of deceased policyholders immediately after the insurers learn from the Death Master File that the policyholders have died."
Commissioner Jones deposited the $1.1 million from AIG Insurance Company, and $697,000 from Nationwide Mutual Insurance Company into California's General Fund as part of a multi-state settlement agreement. CDI also deposited $150,000 from each settlement payment into the insurance fund for reimbursement of costs associated with investigation and enforcement of the settlements.
Further information on this matter can be found in a previous release from October 11, 2012.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.