NYDFS ISSUES $10 MILLION PENALTY TO COLUMBIAN MUTUAL LIFE FOR FAILURE TO COMPLY WITH NY UNCLAIMED PROCEEDS LAWS

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

 

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