Department of Insurance announces
multimillion-dollar settlement with John Hancock Life Insurance
Illinois participated in effort to
examine payment of life insurance benefits
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[November 19, 2012]
CHICAGO -- Illinois Department
of Insurance Director Andrew Boron announced Friday that an
agreement has been reached with John Hancock Life Insurance Co. as
part of a multimillion-dollar settlement with several states. Under
the settlement, John Hancock agreed to change business practices
related to the payment of life insurance benefits and also agreed to
pay $13,300,000 to states that are a party to the settlement.
The regulatory settlement agreement is a result of a multistate examination of
John Hancock's practices and procedures for identifying and paying proceeds to
beneficiaries of life insurance policies and annuities. Illinois, along with
five other lead states, initiated discussions with the company regarding
compliance and the need for reform.
"We appreciate John Hancock's cooperation in reforming its business practices
of locating beneficiaries and to improve on its service to customers," said
Boron. "We also applaud the efforts of our fellow lead states in working to
protect policy beneficiaries and consumers in the payments of benefits
Under the agreement, John Hancock will implement business reforms to promote
a timely and efficient search for the beneficiaries of its in-force life
insurance policies and annuities through regular matches of its insureds and
annuitants against the Social Security Administration's Death Master File.
The agreement becomes effective after it is signed by 20 states. Illinois,
along with California, New Hampshire, North Dakota, Pennsylvania and Florida,
which lead the examination, have signed the agreement.
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A copy of the settlement agreement is available on the Department of
Insurance website at
http://insurance.illinois.gov/Home/ImpLinks.asp. Consumers who
have any questions regarding this settlement, or who have any
questions or concerns about their insurance, should contact the
department's Consumer Division at
http://insurance.illinois.gov/ or call 866-445-5364.
The mission of the Illinois Department of Insurance is to protect
consumers by providing assistance and information, by efficiently
regulating the insurance industry's market behavior and financial
solvency, and by fostering a competitive insurance marketplace. The
department assists consumers with all insurance complaints,
including health, auto, life and homeowner.
Illinois Department of
file received from
Illinois Office of
Communication and Information]