Connecticut insurance regulators are launching an inquiry into allegations that some life insurers delay death payments to beneficiaries.
Commissioner Thomas B. Leonardi said Thursday he is concerned that some insurers may not make reasonable efforts to locate life insurance beneficiaries once a policyholder has died or fail to confirm that a policyholder has died, allowing the policy cash reserves to pay the premium until it lapses.
“It is a double standard that we will not tolerate,” Leonardi said in a statement.
In Connecticut, any accrued funds from policies are declared unclaimed property after three years and are overseen by the state treasurer’s office, he said.
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