Throughout the past few months we have been writing about how the life insurance industry has come under intense scrutiny by state and regulatory agencies regarding compliance with unclaimed property laws and alleged failure to proactively search for beneficiaries entitled to proceeds from life policies. Specific industry practices under the microscope revolve around how companies actively monitor the Social Security Death Master File (DMF), proactively notify a beneficiary of their policy benefits and if they report policies as unclaimed property if the beneficiary is not located.
Valerie Jundt, Managing Director of Consulting and Advisory Services at Keane, dives further into this issue and outlines what life insurance agents can do to avoid the risk of audit within their organization in the September issue of Life Insurance Selling and the October issue of Insurance News Net Magazine. From checking in with policy holders, searching the DMF, understanding the company’s unclaimed property process, and conducting current systems reviews, life insurance agents can ensure client information is up-to-date and accurate. By doing this, life insurance agents will not only protect their reputation with policyholders, but also protect their company and help prevent it from facing an audit.