AIG Life Insurers Enhance Procedures for Unclaimed Property and Resolve
NEW YORK -- October 22, 2012
American International Group, Inc. (NYSE: AIG) announced today that AIG’s life
insurance companies resolved multi-state examinations relating to the handling
of unclaimed property and the use of the Social Security Administration’s
Death Master File (SSDMF) to identify death claims that have not been
submitted to the company in the normal course of business. AIG had previously
disclosed that its life insurance companies had received regulatory inquiries,
including a multi-state unclaimed property audit and related market conduct
The company will pay an $11 million regulatory assessment to the various state
insurance departments to defray costs of the examination and monitoring. In
addition to reserving for the regulatory assessment, AIG will increase its
estimated reserves for policy holder benefit reserve death claims relating to
these audits by $55 million in the third quarter for interest and expected
acceleration of benefit payments under the settlement, including early payment
of policy proceeds under certain older industrial life policies.
AIG is now taking enhanced measures to, among other things, routinely match
policyholder records with the SSDMF to determine if its insureds, annuitants,
or retained account holders have died and locate beneficiaries when a claim is
payable. This puts AIG among the industry leaders in ensuring that
beneficiaries will receive insurance proceeds.
In 2011, prior to receiving any regulatory inquiries, AIG began a diligent
review of its policyholder records, including matching records against the
SSDMF to identify polices where the insured may be deceased but no claim had
been submitted to the Company. To date, as a result of this effort, AIG has
paid more than $100 million to more than 22,000 beneficiaries.
American International Group, Inc. (AIG) is a leading international insurance
organization serving customers in more than 130 countries. AIG companies serve
commercial, institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In addition,
AIG companies are leading providers of life insurance and retirement services
in the United States. AIG common stock is listed on the New York Stock
Exchange and the Tokyo Stock Exchange.
American International Group, Inc.
Jim Ankner (News Media)
Liz Werner (Investment Community)
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