 This settlement with Aviva 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 Illinois, with support from insurance regulators from
Florida, California, New Hampshire, Iowa, North Dakota and Pennsylvania."With
this settlement, there have been 10 resolutions with insurers that have agreed
to implement consumer-friendly practices to timely pay benefits rightfully owed
to beneficiaries," said Boron.
After the settlement with Aviva was negotiated, Athene Holding Ltd., known as
Athene, announced it had completed the acquisition of Aviva. In connection with
the acquisition, Athene sold Aviva's life insurance business to Presidential
Life Insurance Co. – USA, a wholly owned subsidiary of Commonwealth Annuity and
Life Insurance Co. and part of the Global Atlantic Financial Group. Promptly
after Commonwealth's acquisition of the common stock of Presidential Life from
Athene, Presidential and First Allmerica Financial Life Insurance Co. will
together, as the Global Atlantic Insurers, reinsure all of the life insurance
business of Aviva in a bulk reinsurance transaction.
Under the agreement, Athene and the Global Atlantic Insurers will implement
business reforms with respect to the purchased Aviva entities and the reinsured
life business to promote a timely and efficient search for the beneficiaries of
both its in-force life insurance policies and annuities using the Social
Security Death Master File. These companies will regularly match all of Aviva's
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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Market conduct examinations of seven of the 10 largest insurers in
the United States have been resolved. These life insurers, and the
other smaller insurers who have settled, represent more than 50
percent of the market, and the resolutions demonstrate that there is
a sea change in the industry to properly and fairly use the DMF.
A copy of the
Aviva settlement agreement
(PDF) and the
ancillary
agreement (PDF) with Global Atlantic are both 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.
[Text from
Illinois Department of
Insurance
file received from
the
Illinois Office of
Communication and Information]
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