Another multistate settlement reached in Death Master case
News: 2014 Press Release
SACRAMENTO, Calif. –The California Department of Insurance announced today that along with other state insurance departments, they have reached a settlement with the Genworth Life Insurance Company over the insurer's use of the Social Security Administration's Death Master File database. The settlement ensures protection for policyholders and beneficiaries.
"I am pleased with the outcome of this agreement as it is another success in our nationwide effort to reform life insurance industry practices regarding the use of the Death Master database," said
Genworth, which has more than $3.5 billion in annual premiums, agreed to pay $1.9 million to state insurance departments; California will receive roughly $175,000 of the settlement amount. In addition, Genworth agreed to a number of business practice reforms, including using the Death Master File database to search its records for deceased life insurance policyholders so beneficiaries may be paid. Illinois served as the lead state in this investigation, with support from
For many years, life insurers have used the Death Master File to search for and stop payments to annuity holders, but did not use the database to identify deceased life insurance policyholders whose beneficiaries are owed life insurance proceeds. It is estimated that through this practice insurers avoided paying over a billion dollars in life insurance proceeds to beneficiaries.
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.