New York AG Probes Life Insurers’ Efforts to Find Beneficiaries
Posted Jul 5, 2011 11:05 AM CST
By Martha Neil
The New York attorney general is investigating whether nine companies are trying hard enough to find beneficiaries of life insurance policies after the holder dies.
If a case results, an unidentified source tells Bloomberg, the office of AG Eric Schneiderman could invoke the Martin Act, which doesn't require proof of fraudulent intent. Also at issue would be the representations made by the companies to state officials about
Dozens of other states reportedly are pursuing similar investigations.
Representatives of the AG's office and two insurance companies declined to comment when contacted by Bloomberg.
Another Bloomberg article says the state insurance department announced new requirements today for the 172 life insurers and fraternal benefits societies licensed in the state concerning the investigation of claims and payment of benefits.