As a result of legislation enacted in 2016 (Ch. 2016-219, Laws of Florida), insurers are required to compare the records of their insureds' life or endowment insurance policies, annuity contracts that provide a death benefit, and retained asset accounts that were in force on or after January 1, 1992, against the Social Security Administration's Death Master File. Insurers are also required to make such comparisons on at least an annual basis. No later than 120 days upon learning of the death of an insured, insurers must determine whether benefits may be due under a policy, annuity, or retained asset account and complete an effort to locate and contact the beneficiary.
OIR reports that a 2009 investigation revealed that life insurance companies were not taking adequate steps to try to pay out policies where information in the companies' possession indicated that the insured had died but no claim had been filed. According to OIR, these companies were using information from the Social Security Administration's Death Master File to stop paying a deceased person's annuity, but not using the master file to search for beneficiaries of life insurance policies. This finding was the basis of a multi-state task force, with Florida, California, Illinois, North Dakota, New Hampshire, and Pennsylvania serving as lead states for examinations of the 40 largest insurance groups. To date, Florida has regulatory agreements with 27 life insurance companies; these agreements generally stipulate that the companies agree to compare their records against the master file. Insurers that have been unsuccessful in locating a Florida beneficiary remit applicable funds to the Department of Financial Services' Division of Unclaimed Property, where families can search for the funds.
Fund | Dollars | Positions | |
---|---|---|---|
OFFICE OF INSURANCE REGULATION | |||
COMPLIANCE AND ENFORCEMENT - INSURANCE |
29,059,556
|
248.00 |
|
EXECUTIVE DIRECTION AND SUPPORT SERVICES |
3,245,761
|
35.00 |
|
TOTAL |
32,305,317 |
283.00 |
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Review of Professional Employer Organizations and Workers' Compensation, Report 21-04, March 2021 |
Office of Insurance Regulation, 850-413-3140