Tuesday, April 24, 2012

And now for the big bucks

It's been a while since we reported on efforts by some of the 58 states to force life insurers to keep better track of their customers and beneficiaries. Unfortunately, this doesn't mean that said states have been idle in their efforts:

"MetLife's Landmark Unclaimed Property Settlement Could Approach $700 Million - the settlement was a “huge milestone” ... because it was really changing industry practices by making MetLife ... check monthly and as of April 2103, quarterly, against the Social Security Death Master File."

Which sounds like a great idea, except for this:

"[A]s the SSA has itself acknowledged, the DMF is itself rife with potential errors and misinformation"


So now it's become the insurance company's responsibility to track down long-lost relatives, and hope against hope that the information in that Social Security database is accurate.

Rotsa ruck with that.

Here's a question: if insurers are now to be required to track down beneficiaries, how come banks aren't required to track down customers with whom they've lost contact? Why is it okay for the states to have the "unclaimed funds" database but not force them to actively find those owners?

Sauce for the goose, and all that.
blog comments powered by Disqus