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NY Department of Financial Services Investigation Showed Thousands of Policies Went Unpaid

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New York Governor, Andrew Cuomo, announced the results of an investigation into how insurance companies tracked life insurance policy holders which showed 7,525 payments totaling $95.9 million to New Yorkers.


According to a press release, the Department of Financial Services investigation found that insurance companies regularly received a list of recent deaths from the Social Security Administration but were not mandated to determine if the policy holder died.

"This investigation makes it perfectly clear that something must be done to make sure families across New York receive the life insurance benefits that they are due," Governor Cuomo said. "In the wake of this investigation, New York will now mandate that insurance companies actively search the list of recent deaths so money will be paid to beneficiaries instead of being trapped in limbo and a new website will help families search for lost or forgotten policies."

Cuomo also announced the launch of a free online Lost Policy Finder to help New Yorkers locate life insurance policies that have been lost or misplaced. Visit the Launch Policy Finder at the following website: www.NYPolicyFinder.com.

The press release states that the investigation found insurance companies used a list of recent to verify the status of people getting annuity checks. When the death was verified, the insurance company then stopped the annuity payment.

New York was the first state to order the cross-check policy and will issue a regulation to mandate this action in the future.

  • NY Department of Financial Services Investigation Showed Thousands of Policies Went Unpaid

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