Details

  • Service: Advisory, Risk Consulting, Financial Risk Management, Internal Audit and Regulatory Compliance
  • Industry: Insurance
  • Type: Publication series
  • Date: 6/1/2011

Unclaimed insurance benefits - Life and annuity insurers 

This particular issue focuses on unclaimed insurance benefits with life and annuity insurers and the state’s regulatory enforcement that have resulted in investigations.
Life insurance in its simplest form is a contract between an insurer and a policyholder that if the policyholder or named insured dies, the insurer would then pay an amount of money to a named beneficiary or heir. No matter if the life insurance policy is bought for wealth transfer, tax mitigation, or income replacement purposes, the death benefit lies at the heart of every life insurance policy. In the majority of cases, upon the death of the policyholder, the beneficiary or heir notifies the life insurer of the death of the policyholder at which point the insurer promptly pays the death benefit. In some cases, the death benefit may be held by the insurer in a Retained Asset Account (RAA)—accruing interest for the beneficiary or heir— until the beneficiary or heir decides to receive or move the death benefit.