A Chicago-based insurer has become the second sued by California’s comptroller for refusing to comply with requests for data needed to determine whether the insurance companies’ subsidiaries are complying with California’s unclaimed property laws.
California State Controller John Chiang filed the complaint against the Kemper Corporation, formerly known as Unitrin.
Kemper is the parent company of Mutual Savings and Life Insurance Company, domiciled in Alabama; Reliable Life Insurance Company, domiciled in Oklahoma; Reserve National Insurance Company, domiciled in Missouri; Union National Insurance Company, domiciled in Louisiana; and United Insurance Company of America, domiciled in Illinois.
All the subsidiaries are so-called “debit insurance companies” acquired by Kemper. Debit companies sell small-value life insurance companies through agents who collect payments weekly or monthly. Most of these companies began going out of business in the 1960s.
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“Through a series of audits, my office has seen a harmful and systemic trend in the insurance industry that often robs families of life insurance benefits after their loved ones have passed on,” Chiang said.
“Kemper has fought to keep its books closed, and refused to show that it has delivered on the company’s promises to policyholders and their families. That is simply unacceptable, and my office will hold them accountable to both the law and to their customers,” Chang said.