Pennsylvania Protects Consumers in Reaching Settlement with Lincoln
HARRISBURG, Pa., Dec. 10, 2013 /PRNewswire-USNewswire/ -- State Insurance Commissioner Michael Consedine today announced that Pennsylvania has reached a multi-state settlement agreement with Lincoln National Life Insurance Company, Lincoln Life and Annuity Company of New York and First Penn Pacific Life Insurance Company (collectively "Lincoln") regarding its use of the Social Security Administration's Death Master File (DMF).
"With this settlement, life insurance companies representing over 55 percent of the total national market either conform or have agreed to reform their business practices," Consedine said. "I am pleased that Lincoln, a top 10 life insurer, worked cooperatively with the lead states and has agreed to tailor their business practices to do the right thing for policyholders and beneficiaries across the country."
This agreement is a result of a series of multi-state market conduct investigations of the top forty life insurance companies, focusing on the inconsistent use of the DMF and timely payment of proceeds to beneficiaries of life insurance policies and annuities. Under the terms of this settlement, Lincoln has agreed to implement a number of business reforms to promptly identify when a policyholder has died and will use the DMF on a uniform and timely basis to search for deceased policyholders and make payments to their beneficiaries.
This settlement agreement was reached through the coordinated multi-state examination efforts of several state insurance departments, with Pennsylvania as the lead examiner, along with California, Florida, Illinois, Indiana, New Hampshire and North Dakota.
To see a copy of the full settlement agreement, visit www.insurance.pa.gov and click on the "consumer protection" tab. Consumers with insurance questions should call the department's toll free number at 877-881-6388.
Media contact: Rosanne Placey or Melissa Fox, 717-787-3289
SOURCE Pennsylvania Department of Insurance