Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

N.Y. Issues More Subpoenas in RAA Probe

By Arthur D. Postal

X
Your article was successfully shared with the contacts you provided.

WASHINGTON–The New York Attorney General’s office has widened its investigation of retained asset accounts (RAAs) to include several more insurers.

The office has subpoenaed American International Group Inc., New York Principal Financial Group Inc. Aetna Inc., Lincoln National Corp. and CNO, formerly Conseco.

They were added to a group of insurers previously subpoenaed that include MetLife Inc. and Prudential Financial Inc.

Cuomo is also seeking RAA data from Unum Group Corp., Genworth Financial Inc., New York Life Insurance Co., Guardian Life Insurance Co. of America and an insurer acquired by France’s AXA Group.

Among the issues that Andrew Cuomo, New York’s Attorney General, is looking into are the interest rates paid on the accounts and whether adequate disclosure was made to beneficiaries of these policies about their alternatives to deposit the funds.

Cuomo’s office says it also will look into whether state guaranty funds have authority to guarantee payments of these accounts.

The National Association of Insurance Commissioners issued a consumer alert last Sunday advising consumers that they can look for alternative places offering higher interest to deposit the funds received from life insurance payouts. It also pointed out the drafts provided by insurers for withdrawals from the retained asset accounts may not be the same as bank checks.

Other RAA probes underway include investigations by the Veterans Administration, the Department of Defense, the Senate Banking Committee and the House Oversight and Government Reform Committee.

Sen. Charles Schumer, D-N.Y., and Rep. Debbie Halvorsen, D-Ill., have announced plans to introduce legislation that would set new rules for the accounts.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.