N.Y. Finds $665M In Unclaimed Life Insurance
|By MICHAEL GORMLEY, Associated Press|
Many didn't know they were named as recipients by relatives or friends and so would have likely never filed a claim.
"It is only fair for families and individuals who lost loved ones to receive the life insurance benefits to which they are entitled," Cuomo said. "Life insurers are now responsible for proactively identifying policyholder deaths and are making good faith efforts to find people so hundreds of millions of dollars in unclaimed benefits can be paid."
A probe involving
State Financial Services Superintendent
The state and insurance companies have developed a "lost policy finder" system on the state
Consumers can apply for a search for lost or misplaced life insurance policies and annuity contracts on the deceased. Companies would then begin paying benefits that are due.
The difference in the new system and the state law is that these unclaimed funds won't go to state government, but to beneficiaries, according to the Cuomo administration.
The 2011 New York law requires life insurance companies to regularly search their records to identify a policyholder when he or she dies and to locate beneficiaries.
Online: http://www.dfs.ny.gov .
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