State to receive funds for settlement
North Dakota Insurance Commissioner Adam Hamm announced Thursday that a multi-state life insurance settlement has been reached with New York Life Insurance Company over the use of the Social Security Administration's Death Master File database. Of the $15 million total, North Dakota will receive $173,790.
As part of the settlement, New York Life has agreed to a number of business practice reforms, including using the DMF to search for deceased life insurance policyholders so beneficiaries are paid. State insurance departments in North Dakota, California, Florida, Illinois, New Hampshire and Pennsylvania worked together to examine the company's practices.
"This settlement is yet another step in the right direction to reform the life insurance industry's use of the Death Master File database," Hamm said.