TAILIEUCHUNG - NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES INSURANCE REGULATION 200

The Inter-American Development Bank (IDB) works exclusively in Latin America. It has just concluded a study and published a book called So- cial Investment Funds in Latin America: Past Performance and Future Role. It occurred about two years ago that social funds have become overwhelm- ingly popular all over the world. They started out as a way of respond- ing to adjustment and have developed in different ways, doing various things. The IDB decided to look at them to determine what is working and what is not working. The Canadians, the Germans, the Swedes, and the Organization of American States (OAS) also thought the subject de- served review, so. | NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES INSURANCE REGULATION 200 11 NYCRR 226 UNCLAIMED LIFE INSURANCE BENEFITS AND POLICY IDENTIFICATION I Benjamin M. Lawsky Superintendent of Financial Services pursuant to the authority granted by Sections 202 and 302 of the Financial Services Law and Sections 301 316 1102 1104 2601 4521 and 4525 and Article 24 of the Insurance Law do hereby promulgate as an emergency measure Part 226 of Chapter IX of Title 11 of the Official Compilation of Codes Rules and Regulations of the State of New York Insurance Regulation 200 to take effect upon filing with the Secretary of State to read as follows ALL MATTER IS NEW Section Purpose a Many life insurance companies and fraternal benefit societies have not adopted or implemented reasonable procedures and standards to investigate claims and locate beneficiaries with respect to death benefits under life insurance policies annuity contracts and accounts. The Department conducted an investigation into how such insurers track life insurance policy holders. The Department s investigation has found that many insurers have been regularly using lists of recent deaths from the Social Security Administration to promptly cease making annuity payments. However most had not been using it to determine whether death benefits were payable to beneficiaries. b The public needs to know that insurers are taking reasonable steps to ensure that policyowners and policy beneficiaries are provided with all of the life insurance benefits for which they have paid and to which they are entitled. In particular there may be instances where a death has occurred and no claim has been filed but premiums continue to be deducted from the account value or cash value until the policy lapses. In other instances the policies or accounts may simply remain dormant after death. In these instances a valid death benefit is either not paid or distributed or is delayed. c To ensure that policyowners and policy beneficiaries