Nine life insurance companies in New York have come under regulatory scrutiny and will be subject to inquiry regarding the identification of deceased customers and their beneficiaries. The state Attorney General has issued subpoenas to the companies to determine whether they have issued appropriate payouts on the policies of clients that have passed away. Few companies have confirmed the reception of the subpoenas but the Attorney General claims that the recipients are among the leaders in the life insurance market.
The inquiry is a result of a growing number of complaints coming from consumers claiming that their life insurance companies have been less than accommodating in benefits. In some cases, beneficiaries have been all but ignored, with companies citing clerical oversight as the reason behind the lack of payouts. Concerns over the issue have driven regulators to seek answers and ensure that the claims coming from both insurers and consumers are accurate.
AXA Equitable, a notable life insurance company in the state, has confirmed that it has received a subpoena. The company is adamant in its claims that it adheres to the state’s regulations concerning unclaimed property. A spokesperson for AXA said that the company is prepared to fully cooperate with the Attorney General’s office regarding the issue.
The issue of whether life insurance companies are properly handling beneficiary payments is one present throughout the nation. Consumers have been particularly vocal with their concerns in California, where a similar inquiry is currently taking place.
