The Florida Office of Insurance Regulation (OIR) today announced a multi-agency, multi-million-dollar settlement agreement with John Hancock Life Insurance Co. The agreement focuses on the company’s business practices related to unclaimed property for life insurance products and its use of the Death Master File. The Death Master File is a list of everyone who has died as reported to the U.S. Social Security Administration.

“Companies are using the Death Master File to stop company payments for annuities—but do not use this same list to pay beneficiaries of people who have life insurance policies,” said Florida Insurance Commissioner Kevin McCarty. “Unfortunately, this appears to be a pervasive industry practice. The Office appreciates that John Hancock stepped-up and agreed to change its processes before any other company. The agreement with John Hancock will send a strong signal to other companies to audit and modify their practices.”

Investigators said that this selective method of discerning Death Master File information resulted in hundreds of thousands of dollars in lost payments to beneficiaries. The investigation revealed that there are instances when a policyholder died, and years later the company has not paid the rightful beneficiary or remitted the benefits to unclaimed property. OIR believes this practice may affect other insurance companies and insurance companies operating in other states; however, no agreements have been reached with other insurance entities.