Allianz to Pay $4.7M to Settle DMF Case

By Arthur D. Postal
InsuranceNewsNet

WASHINGTON – Allianz Life has agreed to pay a $4.7 million fine and revise it use of the Social Security Death Master File (DMF) in handling death claims.

The settlement with the combined units of Allianz USA mean that subsidiaries of 16 large insurance companies in the United States have reached agreement with state regulators on revising their unclaimed property practices.

The California Department of Insurance (DOI) announced the settlement this morning. It said the two units of Allianz will pay a $4.7 million fine to the states involved in a multistate market conduct examination, and will also revise its policies.

Allianz will now compare all company records against the DMF database to find unclaimed death benefits and conduct a thorough search for beneficiaries to whom unclaimed benefits may be owed, according to a statement from the California DOI.

North Dakota led the examination with assistance from California, Florida, Illinois, New Hampshire and Pennsylvania.

“Allianz joins a number of other insurers who have agreed to step up and do the right thing for consumers by reforming business practices to ensure the proper use of the Death Master database,” said California Commissioner Dave Jones. “I urge other life insurers to follow this example by using the Death Master database to identify deceased policyholders and pay benefits to beneficiaries when they are owed.”

InsuranceNewsNet Washington Bureau Chief Arthur D. Postal has covered regulatory and legislative issues for more than 30 years. He can be reached at [email protected].

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