State announces a multimillion-dollar settlement with Lincoln
National Life Insurance
settlement, over 55 pct of the national market has agreed to
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[December 17, 2013]
CHICAGO — Last week, Illinois Department of Insurance Director Andrew Boron
announced an agreement with Lincoln National Life Insurance Co., Lincoln Life
and Annuity Co. of New York, and First Penn Pacific Life Insurance Co. — collectively referred to as Lincoln
— as part of a multimillion-dollar
settlement with several states regarding the companies' use of the Social
Security Administration's Death Master File. Under the settlement, Lincoln will
pay $12.6 million to states that are a party to the settlement.
This settlement with Lincoln stems from multistate market conduct
examinations of the 40 largest life insurers regarding the timely payment of
proceeds to beneficiaries of life insurance policies and annuities. The
principal lead state in this investigation was Pennsylvania, with support from
insurance regulators from Florida, California, Illinois, Indiana, New Hampshire
and North Dakota.
"I am pleased that market conduct examinations of eight of the 10 largest
insurers in the United States have been resolved," said Boron. "These life
insurers, and the other smaller insurers who have settled, represent more than
55 percent of the market, and the resolutions demonstrate that the majority of
the industry is now properly and fairly using the DMF."
Under the agreement, Lincoln will implement business reforms to promote a
timely and efficient search for the beneficiaries of both its in-force life
insurance policies and annuities, using the Social Security Administration's
Death Master File. The companies will regularly match all of their insureds and
annuitants against the DMF to help promptly identify when an insured has died,
to locate and make payment to beneficiaries.
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A copy of the Lincoln settlement
agreement (PDF) is available on the
Department of Insurance website at
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.
Illinois Department of
file received from
Illinois Office of
Communication and Information]