statute of limitations on life insurance benefits

[doug02346]

What is the name of your state (only U.S. law)? MA
There was a recent case in Massachusetts against Met Life and Prudential where they were found negligent in notifying beneficiaries of life insurance policy benefits. They failed to seek out beneficiaries after policy holders passed on. Obviously, once a certain amount of time passes they are no longer required to pay beneficiaries as a statute of limitations has passed on the policy. I'm trying to find out how long that period of time is in Massachusetts. If anyone could answer that I would appreciate your sharing your expertise.

Thanks!

 

[Betty]

What is the name of your state (only U.S. law)? MA
There was a recent case in Massachusetts against Met Life and Prudential where they were found negligent in notifying beneficiaries of life insurance policy benefits. They failed to seek out beneficiaries after policy holders passed on. Obviously, once a certain amount of time passes they are no longer required to pay beneficiaries as a statute of limitations has passed on the policy. I'm trying to find out how long that period of time is in Massachusetts. If anyone could answer that I would appreciate your sharing your expertise.

Thanks!

This is out of one of my life ins. exam cram manuals: (I worked for a life ins. co. & took exams to get professional designations.) Unlike auto ins. claims, for example, which generally have a SOL for reporting & paying a claim, life ins. has no SOL on notification of death or payment of the policy proceeds. This applies to all states. As long as the ins. co. is notified of the death, all necessary paper work submitted to the co. (example death certificate) & after beneficiaries located, proceeds must be paid. If after a period of time, the benes cannot be located, the proceeds will generally be paid to the deceased insured's estate.

I also just know from working for an ins. co. there is no SOL after which the proceeds no longer need to be paid out. If there is such a law in any state, which I highly doubt, we apparently didn't know about it. Someone would need to post it if they know of such a law. I don't know the case you are talking about but it seems the ins. co. didn't seek out the beneficiaries as they should have or as quickly as they should have. It seems the ins. co. was found negligent.

edited @ left out one word

 

[doug02346]

Hi Betty. Thanks for the great information. FYI, here's a link explaining the case I mentioned: http://www.mass.gov/ocabr/press-releases/20120711-doi.html

 

[Betty]

Hi Betty. Thanks for the great information. FYI, here's a link explaining the case I mentioned: http://www.mass.gov/ocabr/press-releases/20120711-doi.html

It seems ins. cos. were holding funds & not trying to find beneficiaries (*really not trying to find/to check if any of their policyholders had died so benes could be paid*.) The penalties the ins. cos. have to pay (settlement agreements) will make the insurers much more likely to check for deceased policyholders so beneficiaries can be paid their entitled proceeds. (seems they are going to ck. death records) It will be good for the beneficiaries. Seems several states besides Ma. are having settlement agreement penalties that have to be paid for not checking for deceased policyholders & paying benes.

Thanks for the link (interesting) - the ins. cos. settled with the Div. of Ins. (wasn't technically a court case)