Life Insurers Go On Offense

In what appears to be the first counter-offensive of its kind between life insurers and regulators, on September 4, 2013, three life insurers filed an action against the Illinois Department of Insurance and its Director.  The insurers seek a declaration that there is no affirmative obligation to search the Social Security Administration's Death Master File for potential life insurance claims.

The plaintiffs – United Insurance Company of America, Reserve National Insurance Company, and The Reliable Life Insurance Company – state that, on June 1, 2012, the Department initiated a market conduct examination of the insurers, appointing Verus Financial as the examiner.  At that time, Verus was already engaged as an auditor by the Illinois Treasurer (and 37 other state treasurers/comptrollers) to conduct multi-state unclaimed property audits of the plaintiffs.