Insurers responsible for new regulation compliance to distribute death benefits
Does your company need help meeting compliance requirements for 308 Letter and New York Insurance Regulation 200 standards?
If you’re a life insurance company conducting business in New York and are unsure of the requirements in place when it comes to the distribution of death benefits – read on to see how we can help.
A new regulation, New York Insurance Regulation 200 (Unclaimed Life Insurance Benefits and Policy Identification), went into effect May 2012 and places additional due diligence on the insurer – specifically addressing the practice of just terminating annuity payments upon the policy holders death without making distribution of benefits.
In July 2011, insurers where notified through the issuance of the “308 Letter” that new requirements would be implemented to create standard procedures for handling death benefit claims and for locating beneficiaries.
Basics of NY Insurance Regulation 200
In order to understand your responsibilities we’ve outlined the basics of the new regulation:
- Requires you to put reasonable procedures in place – such as identifying unclaimed death benefits, finding beneficiaries and making distribution of funds to the entitled parties.
- Multiple policy search – review of records for other policies/accounts owned by the decedent.
- Investigation standards – confirmation of death notifications against the Social Security Administration Death Master File (cross-checks), allowances for data variations (i.e. initials, middle name use, compound names, incomplete information) and locating beneficiaries.
- Incoming requests from Lost Policy finder – 30 day response for requests to search for policies/accounts on behalf of a decedent.
- Annual Reports – show due diligence was performed to identify outstanding monies and any distribution of policy funds.
This is by no means a comprehensive explanation of the new regulation but a few important basics that should help you understand what is expected of your company.
Compliance and risk management can be tricky business when resources are stretched. RCP Solutions has the skilled professionals ready to recommend best practice solutions. RCP Solutions offers retirement plan services covering active and terminating plans, participant/beneficiary address and life status searches for group annuity, pension and Defined Benefits and Defined Contribution plans as well as data accuracy, missing holder/participant location, communication management and audit capabilities – customized to meet your needs.
Not having the time or resources to comply with Insurance Regulation 200 requirements is not a good excuse when you can partner with an expert. With RCP Solutions as your partner, let us devote our resources to assessing your company’s compliance to the new regulation.
Are you ready to get in touch with us today? Call our offices at 267.607.4169 or contact us online.
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