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BISMARCK, N.D.— North Dakota Insurance Commissioner Adam Hamm announced today the North Dakota Insurance Department has reached a $4.7 million multi-state life insurance agreement with Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York regarding their use of the Social Security Administration’s Death Master File (DMF).
The agreement was the result of a coordinated multi-state examination among state insurance departments in North Dakota, California, Florida, Illinois, New Hampshire and Pennsylvania. North Dakota was the principal lead state in the examination and is expected to receive almost $90,000.
“These examinations and settlements are critical in protecting consumers,” Hamm said. “I want to commend Allianz for stepping forward to do the right thing in improving its practices to locate beneficiaries.”
Life insurers have used the DMF for many years to search for and stop payments to annuity holders, but have not always used the database to identify deceased life insurance policyholders to pay beneficiaries. Under the terms of the settlement, Allianz will implement a number of business reforms to promptly identify when a policyholder has died and will use the DMF on a uniform and timely basis to search for deceased policyholders and make payments to their beneficiaries.
The Department has been part of 16 multi-state settlements with insurance companies regarding life insurance practices and to date has received more than $2.2 million. Consumers with questions about the settlement are encouraged to call the Department at 1-800-247-0560.
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