Florida reached a life claim settlement agreement with Transamerica Life Insurance Company (Transamerica) and its affiliates.
All of the settlements concentrate on the insurers’ asymmetrical use of the U.S. Social Security Death Master File (DMF) and the practice of using it to stop paying a deceased person’s annuity, but not using it to search for beneficiaries of a life insurance policy to determine if benefits were due. As part of the settlement agreements, insurers are now required to use it in locating beneficiaries and must promptly remit payment to the unclaimed property division of each state for beneficiaries that cannot be located.
As a result of this process, regulators predict the overall anticipated payouts will eventually reach up to $3 billion to beneficiaries directly and through the states. The estimated amount of property to be reported nationally for the Transamerica settlement is $137 million. The Transamerica settlement represents the eighth life claim settlement agreement for Florida.
In other news:
Creative Marketing International Corporation’s management announced that CM2 Holding Inc., a Kansas holding company, completed the purchase of the stock of Creative Marketing International Corporation from Aviva USA.
The transaction was unanimously approved by both Aviva USA and Athene Holding Ltd., which acquired the former in a stock transaction shortly following.
The new majority owners of CM2 are in current management: Mike Tripses, president, and Will Moneymaker COO/CFO. One additional minority owner, Mark Heitz, was formerly president of Sales & Distribution for Aviva USA.
The transaction provides Creative’s management ownership of one of the industry’s leading insurance and financial wholesalers. As an independent and privately owned corporation, Creative Marketing will be well equipped to take advantage of the changing competitive dynamics in the market and capitalize on the continuing evolution of consumer demand for retirement solutions through Annuities, Life Insurance and Securities.
Creative Marketing’s new ownership will focus on solidifying the company’s status as the industry’s leading IMO and executing an aggressive growth strategy.
In approved states, MetLife is introducing the Enhanced Care Benefit as a rider available on its entire whole life portfolio, for policies first sold after Sept. 3, 2013.
Consumers will now have the option to use their life insurance to not only help protect against the consequences of an untimely death, but also, by accelerating a portion of the death benefit in the event of the insured’s prolonged illness against the consequences of the costs associated with ongoing care necessitated by such an illness.
The Enhanced Care Benefit provides policyowners the ability to accelerate, generally on an income tax free basis subject to certain limits, up to 90 percent of a policy’s death benefit over the life of the policy which can be used to help pay for ongoing care if an insured develops a prolonged illness. The rider can be included on all MetLife Promise Whole Lifepolicies at no additional premium charge. There will be a processing fee of $150 and the amount of money accessed will be discounted by a certain percentage, but consumers will not have to pay anything out-of-pocket to access the Enhanced Care Benefit.
The Round Table of New York announced that Fred Sievert, FSA, MAAA, the retired president of New York Life Insurance Company, is the recipient of its 2013 Lifetime Achievement Award.
Sievert will be honored at the Round Table of New York’s 95th Anniversary Black Tie Dinner set for Monday, Dec. 2, 2013 at the Union League Club.
The Round Table of New York’s annual Lifetime Achievement Award goes to an individual who has made significant contributions to the insurance and financial services industry. The award recognizes individuals for their accomplishments in the areas of ethics, education and industry leadership.
Sievert began his career with New York Life as senior vice president and chief financial officer of the Individual Operations and, after a long series of promotions and increased responsibilities, was elected president of the company in 2002.
Under Sievert’s leadership, New York Life achieved its first number one market share ranking in the sale of life insurance in the United States and maintained that distinction for seven years. While serving as president, the company also achieved a number one market share ranking in the sale of immediate annuities and in the direct sale of life insurance through the AARP organization. During that same period the company regained its triple-A ratings from all four of the top insurance company rating agencies and significantly expanded its international presence.