John Hancock Reaches Settlement With California, 5 Other States
CONCORD, N.H. (AP) — New Hampshire’s insurance commissioner says the state is one of six that’s entered into a settlement with John Hancock Life and Health Insurance Co. over unpaid life insurance benefits, the latest in a string of settlements with state regulators.
Roger Sevigny said New Hampshire, California, Illinois, Michigan, North Dakota and Pennsylvania investigated John Hancock’s retention of benefits that should’ve been paid to beneficiaries. He said it’s expected that “many millions of dollars more per year” will go to consumers.
Sevigny said John Hancock selectively used the Social Security Administration’s Death Master File database to end benefits payments, but didn’t use it to find deceased policyholders or their beneficiaries.
The company also agreed to pay $13.3 million to the six states.
AIG, Prudential, MetLife, Nationwide reached have reached similar settlements.
Copyright 2012 The Associated Press.