State insurance regulators warn consumers about “retained-asset accounts”
Monday, August 16, 2010
Bloomberg: “State insurance regulators…issued a consumer alert about the industry practice of retaining [life insurance death benefit] funds rather than paying them in a lump sum,” according to this report by David Evans and Hui-Yong Yu. The president of the National Conference of Insurance Legislators, Kentucky state representative Robert Damron, said, “Allowing the life insurance companies to default to retained-asset accounts is just not acceptable. How any consumer advocate, which is what an insurance commissioner is supposed to be, could allow a default to an RAA raises serious concerns in my mind about who is protecting who.” For more about the practice of “retained-asset accounts,” see our earlier post.