Insurance Department reaches multi-state settlement with John Hancock Life Insurance Posted on 11/16/2012
BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm announced today that the North Dakota Insurance Department has reached another multi-state settlement dealing with life insurance practices. North Dakota will receive an estimated $178,172 as part of a $13.3 million settlement with John Hancock Life Insurance Company (U.S.A.) and John Hancock Life and Health Insurance Company.
The state insurance departments in North Dakota, California, Illinois, New Hampshire, Pennsylvania and Michigan conducted a multi-state examination of John Hancock's activities relating to identification of potentially deceased policyholders, as well as efforts to locate and pay beneficiaries. The exam revealed several areas of concern with the company's practices.
"This settlement is important in protecting insurance consumers and their families," Hamm said. "John Hancock joins several other companies in changing their business practices for the benefit of consumers."
John Hancock agreed to business reforms that will ensure prompt payout of benefits to consumers, including the use of the Social Security Administration's Death Master File (DMF) to locate information about deceased policyholders. Life insurance companies commonly use the DMF to find out if policyholders have died.
The settlement becomes effective when 14 additional state insurance departments sign on.
The Department has recently been part of three other multi-state settlements with insurance companies regarding life insurance practices. Consumers with questions about the settlement are encouraged to call the Department at 1-800-247-0560.
