Florida regulators are looking to return to residents some $25 million in unclaimed property that has been returned to the state as part of a settlement agreement with American International Group over life insurance benefits.
In October, AIG agreed to settle a case stemming from the insurer’s failure to compare their policyholder rolls against the Social Security Death Master File in order to locate beneficiaries of life insurance policies.
Regulators charged that AIG’s failure to do so resulted in thousands of residents not being informed that they are due life insurance benefits. Further, regulators said the insurer did not follow state law that requires the insurer in cases where a beneficiary cannot be found, to return the face value of the policy to Florida’s Bureau of Unclaimed Property, which serves as a clearinghouse for residents to search for funds.
The $25 million settlement is just the first of what is expected to be multiple payments from AIG to the state.
Florida’s agreement with AIG is the fifth such agreement the state has settled with national insurers for their failures to use the Social Security’s data base. To date, those settlements have generated over 73,000 accounts with more than $51.25 million being returned to Florida for distribution to residents.
Was this article valuable?
Here are more articles you may enjoy.
Man Admits to Tracking Drivers, Programming Keys, Stealing and Reselling Vehicles 
Study Urges Rethinking of Disaster Management in Era of Compounding Events 
Hard Market Conditions Expected to Ease in 2025 as Claims Inflation Softens: Swiss Re 
Why Texas Mass Power Outages Continue to Happen 
