Death Master Report

7 On February 2, 2012, Insurance Commissioner Dave Jones announced the first of many settlements with life insurers that the California Department of Insurance (CDI) negotiated, along with Florida, Illinois, New Hampshire, North Dakota, and Pennsylvania. The first insurer to settle was Prudential Insurance Company (Prudential). “Prudential Life Insurance should be acknowledged for reaching this agreement, which requires that they use Death Master and all other means available to them to ensure that when life insurance policyholders die, their beneficiaries receive the benefits owed,” said Commissioner Jones. The settlement agreement required Prudential regularly to check the Social Security Death Master file to determine whether any of its life insurance policyholders, owners of annuities, and holders of retained asset account have died. If Prudential found that a policyholder died, the agreement required Prudential to conduct a thorough search for beneficiaries, using all contact information in its records and online search and locator tools. If insurers beneficiaries could not locate them, Prudential was required to turn the proceeds owed to beneficiaries over to the states as required by state unclaimed property laws. The agreement also required Prudential to pay $17 million collectively to the states participating in the settlement. California’s share of the settlement was $1.4 million. “This settlement is an important step in the efforts of the California Department of Insurance to ensure that beneficiaries promptly receive the benefits they are due when a relative or loved one dies,” Commissioner Jones said. “I am hopeful this settlement will lead other life insurers to come forward and enter into similar agreements.” On April 30, 2012, Insurance Commissioner Dave Jones announced a second multi-million dollar settlement with MetLife, Inc. (MetLife). MetLife agreed to strict business reforms to ensure it quickly pays out life insurance benefits. The company agreed to pay $40 million to state insurance departments. California’s share of the settlement was approximately $4 million. IV. Settlements