LAS VEGAS, NV, October 21, 2012 /24-7PressRelease/
-- Local Governments are taking note of the millions and millions of dollars that remain unclaimed from life insurance policies because, life insurance companies are
unaware when a policy holder has passed away. States are now passing new legislation, that requires life insurances companies to check State databases of recent deaths
against their policy holders. This will ensure, that the beneficiaries of the policy will receive the benefits that the holder of the life insurance policy intended
them to have and will help put millions of unclaimed money back into the pockets of the rightful owners of these funds.
This new Act started when the Department of Financial Services began an investigation into how life insurance companies handled policy holder's deaths. The
investigation helped over 32,000 consumers receive more than $262 million in unclaimed death benefits. In New York alone, over $95 million in unclaimed money was
handed back to over 7,000 residents.
"People sacrifice to buy life insurance to help their loved ones after their death, so it's reasonable to make sure their families actually receive the benefits when
they are eligible. Our investigation clearly proved that life insurers should be checking the list of recent deaths as a standard practice to find out when benefits
may be due," Governor Cuomo said.
At a minimum Insures must now:
1. Cross check their policies at least every three months with recent deaths.
2. When a policy is sold, request more detailed beneficiary information.
3. Search for multiple policies on the same person in the files of all insurers owned by a holding company.
4. Cross-check policies with consumer requests received through the State's new Lost Policy Finder at http://www.NYPolicyFinder.com.
The primary focus of these new rules for life insurance companies is to make sure, that unclaimed benefits go to the beneficiaries.
Life Insurance companies must also hand over unclaimed policies to the State, the same way that ordinary business must hand over unclaimed property, that remain unpaid
for a legally determined period of time. In the case of life insurance, the usual period is 3 years. In addition, the new regulation for life insurers now requires
them to submit every year to the Office of the State Comptroller the number of policies for which a death occurred but for which the insurers were unable to find the
"The new legislation by New York, is great news for consumers who may not know if they are a beneficiary to a life insurance policy, since they will now be notified
sooner that they have an unclaimed benefit. Let's hope other states follow suit", says Edward Palonek, founder of Foundmoney.com, a company that provides information
to Americans on where they may find lost or forgotten money and other assets.
Each year, thousands of people lose track of their bank accounts, cash, stocks, bonds, refunds, royalties, safe deposit boxes and other property. People move and forget to furnish their bank, broker, employer or insurance company with a forwarding address. Foundmoney.com helps you locate that money.---
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