Aviva Life Insurance Co., along with Midland National Life Insurance Company and North American Company for Life and Health Insurance, two components of Midland, have reached settlements with various state regulators regarding their unclaimed property practices.
In Aviva’s case, the agreement was a prelude to the company’s sale to a Bermuda-based holding company which then divided the company into separate life and annuity businesses.
The agreements over claims settlement practices was another sign that insurance regulators examining unclaimed property practices of insurance companies have completed agreements with the major players in the industry and are moving on to deal with small and medium-sized companies.
Aviva Life & Annuity Company and Aviva Life & Annuity Company of New York paid $4 million to the states in fines and agreed to use the Social Security Death Master File (DMF) on a regular basis as a way of complying with state unclaimed property laws.
Its settlement was announced last week by the Illinois Department of Insurance. Florida, California, New Hampshire, Iowa, North Dakota and Pennsylvania were also parties to the settlement.
Midland’s settlement was announced today by Florida. It paid $3.3 million to settle with Florida, California, Illinois, Iowa, New Hampshire, North Dakota and Pennsylvania. Illinois was again the managing state.
The two companies involved are Midland National Life Insurance Company, Sioux Falls, S.D., and North American Company for Life and Health Insurance, West Des Moines, Ia. Collectively, they are referred to as “Midland.” They are part of the Sammons Financial Group.