Hamm participates in public hearing addressing life insurance claim settlement practices
Posted on 5/23/2011
Commissioner Hamm at Florida hearing
BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm participated in a public hearing last week in Tallahassee, Fla. as part of a National Association of Insurance Commissioners (NAIC) task force investigating the claim settlement practices of life insurance companies.
Insurance regulators have been investigating a number of large life insurance companies regarding the possible failure to pay death benefits to beneficiaries of life insurance policies. The alleged practices include use of the Social Security Administration's Death Master File by insurers for purposes of terminating payments under annuity contracts, but failing to use this same information to facilitate the payment of claims on life insurance policies.
"In addition to these public hearings, the NAIC and its task force intend to coordinate multi-state examinations to review these practices and ensure fair treatment of policyholders and beneficiaries," Hamm said.
Members of the NAIC's task force include California, Florida (chair), Illinois, Iowa, Louisiana, New Hampshire, New Jersey, North Dakota, Pennsylvania and West Virginia. Another public hearing is being held today in California.