NYDFS penalized Columbian Mutual Life Insurance Company for allegedly failing to comply with New York law concerning unclaimed life insurance proceeds. Enforcement takeaways:
– Recent enforcement efforts continue focus on Insurance Industry.
– Consent Order for failing to comply with New York law governing unclaimed life insurance proceeds.
– Investigation found company failed to cross-check all policies against Social Security Administration Death Master File records and delayed outreach/outright failed to contact beneficiaries for thousands of policies.
– Company also failed to transfer death benefits to New York State as abandoned property when unable to locate beneficiaries.
The enforcement action may be found here: https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202201111