Multistate Report Finds USAA Used the Death Master File (DMF) Appropriately
Monday, February 10, 2014
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty announced today the release of the Multistate Targeted Market Conduct Examination Report for United Services Automobile Association Group and its affiliated companies, excluding USAA Life Insurance Company of New York (collectively referred to as “USAA”).
The examination of USAA began in December 2012 and was managed by New Hampshire as part of the ongoing market conduct examination effort being guided and coordinated by the National Association of Insurance Commissioners (NAIC) Life/Annuities Claim Settlement Practices Task Force, which is chaired by Commissioner McCarty.
The Task Force is focused on investigating how life and annuity insurers have utilized the Social Security Death Master File (DMF) to identify deceased life insurance policyholders and annuitants and the efforts these insurers have undertaken to either pay beneficiaries or report and remit unclaimed property to the appropriate agencies.
During the examination of USAA, it was discovered that the company began using the DMF in the late 1990’s to validate its marketing mailing lists and began conducting regular matches between the DMF and its complete “member database” soon thereafter. In 2007, the company transitioned into a weekly matching process to determine if benefits were owed to policyholders represented on the DMF. The report findings concluded that USAA used the DMF symmetrically across product lines negating the need for a multistate regulatory settlement agreement.
“USAA’s policies and procedures are representative of how life insurance companies should have been utilizing the DMF all along and they are to be commended for their vision on this issue,” stated Commissioner McCarty.
To date, state insurance regulators have either reached settlements or concluded the investigation of 15 of the top 40 companies constituting 60% of the total market. The efforts of the Task Force continue to be focused on the examination of the remaining top 25 insurers.
For more information, visit the Office’s Life Claim Settlement Practices webpage. To search or submit a request for unclaimed property, visit www.FLTreasureHunt.org, or call 1-88-VALUABLE or (850) 413-3089.