Largest U.S. life insurance companies under multistate investigation for non-payments to beneficiaries - What Agents can do to help insurers avoid future contact failures

MetLife, the largest life insurer in the United States, will pay nearly $500 million to settle a multistate investigation into unpaid claims for dead policyholders. A spokesman for MetLife said its settlement contemplates $438 million in payments to policyholders and beneficiaries, plus $40 million in settlement costs, for a total approaching $500 million. The company said it has set up an online system to help people track down policies and it is contacting older policyholders, many of whom took out their insurance without providing a Social Security number or date of birth. The lead states on the MetLife deal were California, Florida, Illinois, New Hampshire, North Dakota and Pennsylvania.

California investigates 10 life insurance companies over lack of payments to beneficiaries
California Insurance Commissioner Dave Jones has stepped up the already intense pressure on life insurance companies accused of not paying death benefits, vowing to hold market conduct examinations of 10 of the biggest carriers. The companies are accused of failing to investigate whether life insurance customers have died and failing to find their beneficiaries – even though the companies actively searched for deceased annuity customers so that insurers could stop making annuity payments.
Insurance Agents can now help insurers assure their policyholders peace of mind concerning the contacting of beneficiaries when the time comes
Millions of individuals ensure that their loved ones are financially cared for in the event of illness or death, and life insurance policies are a popular means of securing the fiscal well being of one's family and loved ones at a time of loss. Families often use this means as a way of safeguarding future fiscal obligations of spouse and children. Agents can help their companies avoid future beneficiary contact failures by making policyholders aware of the new Beneficiary Contact Service, which will also give them peace of mind that their beneficiaries will be contacted for payments due them when such time arrives.
The Beneficiary Contact Service utilizes today's technology along with a NEW and innovative approach to help insurance companies search for and contact beneficiaries. When beneficiary payments are due, companies can use the free search and locating service at by entering the person's Beneficiary Contact Code to instantly obtain current contact information. Because of the many great service benefits given to members and their families, members have an incentive to keep their contact information up to date. Parents can also create custom codes for each minor child and have a relative, guardian or authorized person over the age of 18 serve as the contact person for their child if beneficiary matters arise. Once their child reaches 18 years of age, the code can be released by the adult and then re-assigned to the child's new FREE personal Wemetcard Membership account with full access to the Beneficiary Contact Service system.
Although the service is FREE, when referred members upgrade to Premium membership which comes with many added benefits, a 20% life-time recurring commission is paid to the person or company who makes each referral. To help insurers avoid future contact failures, insurance agents can inform policyholders about the service by joining the special Agents Affiliate Program, and include their customized affiliate hyperlink in emails and newsletters, or post text links and graphic banners on their websites, blogs, Facebook pages and other social media sites.
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