State announces a multimillion-dollar settlement with Genworth

[January 24, 2014]  CHICAGO — This week Illinois Department of Insurance Director Andrew Boron announced an agreement with Genworth Life Insurance Co., Genworth Life and Annuity Insurance Co., and Genworth Life Insurance Co. of New York — collectively known as Genworth — as part of a multimillion-dollar settlement with several states regarding use of the Social Security Administration's Death Master File. Under the settlement, Genworth will pay $1.9 million to states that are a party to the settlement.

This settlement with Genworth 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, Delaware, New Hampshire, North Dakota, Pennsylvania and Virginia.

"I am pleased that Genworth stepped forward to make business reforms to timely pay beneficiaries," said Boron.

Under the agreement, Genworth 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 Death Master File. Genworth will regularly match all of its insureds and annuitants against the master file to help promptly identify when an insured has died and to locate and make payment to beneficiaries.

With this settlement, more than 55 percent of the market has agreed to business reforms to properly and fairly use the Social Security Death Master File.

A copy of the Genworth settlement agreement (PDF) is available on the Illinois 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]