American International Group announced that AIG’s life insurance companies resolved multi-state examinations relating to the handling of unclaimed property and the use of the Social Security Administration’s Death Master File to identify death claims that have not been submitted to the company in the normal course of business. AIG had previously disclosed that its life insurance companies had received regulatory inquiries, including a multi-state unclaimed property audit and related market conduct examination. The company will pay an $11M regulatory assessment to the various state insurance departments to defray costs of the examination and monitoring. In addition to reserving for the regulatory assessment, AIG will increase its estimated reserves for policy holder benefit reserve death claims relating to these audits by $55M in Q3 for interest and expected acceleration of benefit payments under the settlement, including early payment of policy proceeds under certain older industrial life policies. AIG said it is now taking enhanced measures to, among other things, routinely match policyholder records with the SSDMF to determine if its insureds, annuitants, or retained account holders have died and locate beneficiaries when a claim is payable.
- Politics & Government
- American International Group
- unclaimed property
- Social Security Administration