Tags: BNCOPY | BNSAC | BNSTAFF | BNTEAMS | BUSINESS | CA | COS

California Compels Life Insurers to Get Permission to Retain Benefits

Monday, 03 Oct 2011 06:56 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Life insurers in California must receive approval from beneficiaries before keeping death-benefit payments in retained-asset accounts, under a state law Gov. Jerry Brown signed Monday.

The law requires insurers to get a written declaration from beneficiaries on how they want to receive payments, according to Dave Jones, the state insurance commissioner. If a beneficiary doesn’t make a choice, the insurer may issue a retained-asset account only if it has clearly disclosed its intention to do so.

Insurers have drawn fire from government officials since Bloomberg Markets magazine reported last year that carriers profit by holding and investing $28 billion owed to beneficiaries in so-called retained-asset accounts.

Retained-asset accounts were created as “a compassionate response” to beneficiaries’ needs, Jack Dolan, a spokesman for the American Council of Life Insurers, said last year. The products give grieving families time to decide what to do with their payouts, the council said.


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Purdue Professor: Ebola 'Unlikely to Spread Here' in US

Friday, 19 Sep 2014 20:25 PM

The Ebola virus is unlikely to cause a deadly epidemic in the United States, according to David Sanders, an associate pr . . .

Polly Bergen, 'Cape Fear' Actress, Dies at 84

Saturday, 20 Sep 2014 20:04 PM

Actress and singer Polly Bergen, who's best known for her role in the original Cape Fear opposite Gregory Peck, died a . . .

Feds Mum on Prosecution of Illegal Border Crossers

Saturday, 20 Sep 2014 17:33 PM

The federal government refuses to say whether prosecutors in Yuma, Arizona, have scaled back a years-old program that gu . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved