The state of Louisiana will collect about $1 million in a settlement with John Hancock Life Insurance Co. as part of a massive investigation into the insurer's payment of death benefits
The state of Louisiana will collect about $1 million in a settlement with John Hancock Life Insurance Co. as part of a massive investigation into the insurer's payment of death benefits.
The agreement will go into effect next month, according to an announcement from Louisiana's Treasury Department.
Some 35 states are participating in the investigation of practices involving payment of death benefits.
This is the third such announcement for John Hancock, which two weeks ago reached a settlement with Florida that included a $3 million payment to three regulatory agencies.
The insurer also agreed to return funds to beneficiaries and to establish a $10 million fund for beneficiaries it has been unable to locate.
Last month, John Hancock reached a settlement with California valued at $20 million.
An audit into John Hancock revealed that the insurer failed to report unclaimed life insurance benefits properly, according to Louisiana officials.
“In many cases, those who were owed benefits because of the death of a loved one were never even notified,” said the state's treasurer, John Kennedy. “We will do everything we can to find these families and return the money that rightfully belongs to them.”
Hancock, for its part, said in a statement that it is “taking additional steps to help ensure that policyholders' beneficiaries are located, and if not, the funds are paid over as abandoned property to the state, which holds the funds until claimed by the true owner.”
E-mail Darla Mercado at dmercado@investmentnews.com.
