New York Attorney General Extends Probe Into Life Insurance Company Beneficiary Payouts
New York, New York, For Immediate Release: Napoli Bern Ripka Shkolnik LLP commends New York Attorney General Eric Schneiderman for expanding an investigation into the way life insurance companies identify deceased insureds and pay death benefits. According to several media reports, New York Attorney General Eric Schneiderman recently sent subpoenas to nine companies including units of AXA SA, Genworth Financial Inc., Guardian Life Insurance Co. of America, Manulife Financial Corp., Massachusetts Mutual Life Insurance Co., New York Life Insurance Co., Prudential Financial Inc., and TIAA-CREF details on unclaimed insurance policy proceeds that are supposed to be turned over to the state. Regulators in Florida and California embarked on similar insurance investigations earlier this year, and National Association of Insurance Commissioners, an alliance of the states’ top insurance officials, is also looking into such practices.
The New York investigation is focused on whether or not life insurance companies are doing enough to identify deceased insureds and make payments to their designated beneficiaries. Insurance companies can use a database prepared by the Social Security Administration called the “Death Master,” which lists all Americans who die to make such determinations. It is known that insurance companies use the database to stop payments under annuity contracts, but not when it comes to paying out claims. In addition to the subpoenas, the Insurance Commissioner is seeking agreements from over 160 life insurers that they will use the Social Security database to determine if any death benefits are overdue and report back to the state.
Purchasers of life insurance policies should feel confident that their family or other beneficiaries will be well taken care of financially after they’ve passed on. Unfortunately a number of life insurance companies have failed in their obligation to properly identify and pay beneficiaries after a policyholder had passed on, a fact that was exposed by several insurance commissioners earlier this year. This prompted commissioners to dig deeper into understanding how companies were handling life insurance payouts and they were not happy with what they found. According to one Florida regulator: “life insurers may be keeping $1 billion in unclaimed benefits owed to policy holders, beneficiaries or states.”
Persons who are 65 years of age or older and have “whole life” or “universal life insurance” with any life insurance companies may find their death benefits and beneficiaries’ rights are at risk. Nationally known law firm Napoli Bern Ripka Shkolnik, LLP is currently investigating claims into the payment practices of these life insurance companies.
Securities Lawsuits
The securities litigation and arbitration department at Napoli Bern Ripka Shkolnik, LLP investigates hundreds of securities and corporate related claims every year. NBR’s practice focuses on securities litigation and arbitration, whistle blower complaints, consumer fraud, employment related securities matters. Our substantial experience in the securities area is crucial in assisting our clients to navigate the industry’s numerous regulatory entities and laws to obtain the results you want.
The attorney’s in this department specialize in rooting out all kinds of financial industry and corporate abuses including fraud, conflicts of interest, and broker negligence. Widely known and highly respected, the law firm of Napoli Bern Ripka Shkolnik, LLP and its securities arbitration attorneys have handled hundreds of securities cases and recovered millions of dollars in settlements and awards for victims of fraud and misconduct.
Cases and Settlements of Note
Securities Lawsuits & Settlements
- Client v. McGinn Smith & Co. The firm represented a retail customer of a registered broker-dealer in a fraud and self-dealing case. Following a three-day arbitration, a panel of three arbitrators found McGinn Smith guilty of self-dealing and awarded our client his full out of pocket losses.
- Client v. Financial Institution; The firm represented a retail customer who purchased Financial Institution’s bond funds from third party broker-dealer. The Client alleged that Financial Institution misled investors and their brokers concerning the funds holdings. After intense litigation, the chair rejected Financial Institution’s argument that those who relied on the firm’s representations contained in the prospectus and other materials disseminated by the firm did not have standing to hold the firm liable in FINRA and awarded the Client her full loss.
- Client v. UBS Financial Services Inc. The firm represented a retail customer in the inappropriate purchase of a private placement that defaulted on its debt. The Client argued that the purchase of the private placement violated the Investment Advisor Act of 1940’s “Qualified Purchaser” provision that was designed to protect consumers from investing in speculative investments. The panel awarded the Client restitution with interest.
- Platovsky v. City of New York. The trial court’s order was affirmed in favor of our client, a litigation financial services company, finding that an arbitration clause in a litigation financing contract was effective against the contracting litigant despite collateral claims that the matter should remain in Supreme Court because the contracting litigant claimed that his trial attorney had been dismissed for cause.
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