It was recently reported that several state insurance departments have entered into a settlement agreement with a major insurer concerning the findings of a multistate examination of unclaimed property practices. Lead states in the agreement include California, Florida, Illinois, New Hampshire, New Jersey, North Dakota and Pennsylvania. It has been reported that up to 20 states may sign on to the agreement.
A question arises concerning whether the terms of the settlement agreement may serve as a template for state regulatory examinations of unclaimed property issues. Based on discussions with several state insurance regulators, it has been reported that elements of the agreement will be viewed as a template for use by regulators in examining insurer unclaimed property practices.
The settlement agreement and its associated attachments provide helpful insight as to regulatory expectations concerning insurer unclaimed property practices.