Monday, December 16, 2013

Washington receives $192,293 from multistate insurance settlement

Washington state is receiving $192,293 as part of a multistate settlement against Lincoln National Life Insurance Co. and two of its affiliated companies.

Lincoln National Life Insurance Co., Lincoln Life and Annuity Co. of New York, and First Penn Pacific Life Insurance Company—part of the Lincoln Group Companies—agreed to a $12.6 million settlement regarding its policies and procedures for identifying and paying customers and their beneficiaries for life insurance policies, retained asset accounts and annuity contracts.

Six states’ insurance commissioners led the case--California, Florida, Illinois, Indiana, New Hampshire, North Dakota and Pennsylvania. The settlement terms require Lincoln to reform some business practices and regulatory oversight for several years, culminating in a final review in five years.

In Washington, fines paid by insurance companies are deposited in the state's general fund to pay for state government operations and public K-12 education. Life insurance pays a predetermined amount of money to beneficiaries upon the death of the policyholder. Read more about life insurance on OIC’s website.

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