Florida Reaches $25 Million Settlement With AIG

By  //  January 10, 2013

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For Unclaimed Life Insurance Benefits

TALLAHASSE, FLORIDA – Florida’s Chief Financial Officer Jeff Atwater has announced 61,271 new unclaimed property accounts, valued at more than $25 million, are being received as part of a settlement with AIG related to unclaimed life insurance benefits.

Florida’s Chief Financial Officer Jeff Atwater says the state has 61,271 new unclaimed property accounts as part of a settlement with AIG for unclaimed life insurance benefits. (Image courtesy of Florida Department of Financial Services)

This represents only the first of what is expected to be additional remittances to be made by the insurer.

“These new accounts represent dollars loved ones set aside to secure financial stability for their families. Holding companies accountable means these dollars will now be returned to their rightful owners across the state,” Atwater said.

The practice addressed in the settlement agreement, signed Oct. 22, involves life insurance companies determining an insured has died by comparing policyholder records to the Social Security Administration’s Death Master File.

Many companies have used this method to stop annuity payments, but have not used the same method to issue life insurance payments. When an insured or beneficiary cannot be located, the insurance company is responsible for reporting and remitting the monetary value of the policy to the insured’s state department of unclaimed property.

State unclaimed property programs provide a central means by which the owners, or their heirs, can find out about and claim the funds.

The agreement with AIG is the fifth agreement that Florida has settled that requires large national insurers to appropriately use the death file to locate life and annuity beneficiaries, and promptly remit payment to the unclaimed property division of each state for beneficiaries that cannot be located.

To date, the five settlements have resulted in 73,859 new accounts worth more than $51.25 million being remitted back to the state Bureau of Unclaimed Property for Floridians to claim.

To search for or claim unclaimed property, visit www.FLTreasureHunt.org, or call 1-(850-413-5555.