- Florida Announces a $3.3 Million Multi-State, Multi-Agency Life Claim Settlement Agreement with Midland
- November 27, 2013
- Law Firm: Colodny Fass Talenfeld Karlinsky Abate Webb P.A. - Fort Lauderdale Office
Florida Insurance Commissioner Kevin McCarty announced today, November 25, 2013, that a $3.3 million life claim settlement agreement ("Agreement") has been reached with Midland National Life Insurance Company and North American Company for Life and Health Insurance ("Midland").
The Agreement with Midland and other similar insurers focuses primarily on their asymmetrical use of the Social Security Administration's Death Master File ("DMF") to cease making annuity payments, but not to search for beneficiaries of a life insurance policy who may be due benefits. Midland has agreed to implement business reforms correcting this practice and to make a multi-million dollar payment, which will be disbursed among the participating states. Florida's portion of the $3.3 million payment is expected to be more than $282,761.
The multi-state examination was conducted by Florida, California, Illinois (the managing lead state), Iowa, New Hampshire, North Dakota and Pennsylvania. Along with these states, the Agreement parties include the Florida Department of Financial Services, Office of the Florida Attorney General, and the Florida Office of Insurance Regulation.
Additionally, the settlement agreement requires Midland's implementation of the following business practices and reform measures:
- Comparison of all company records against the DMF Update File every month and against the complete DMF file at least annually.
- Provision of quarterly reports to the lead states about the implementation and execution of the requirements of the Agreement for 36 months following its conclusion.
- A follow-up examination to determine compliance 39 months following the conclusion of the Agreement.
Established in 2011, the multi-state examination process is guided and coordinated by the National Association of Insurance Commissioners' Life/Annuities Claim Settlement Practices Task Force, which is currently chaired by Commissioner McCarty.