Florida regulators have inked a $40 million settlement with nine Metropolitan Life insurance companies to strengthen their procedures for finding life and annuity beneficiaries and reporting unclaimed property.
MetLife was accused of failing to do due diligence in searching for policyholders or beneficiaries of low-value or industrial life insurance policies that were sold in the early 1900s up to 1964. In Florida, alone, more than 15,000 policyholders have policies worth more than $9 million in face value.
As part of the agreement, MetLife agreed to strengthen efforts to locate policyholders and beneficiaries within 120 days of a death. If a beneficiary cannot be found after a year, the company must report and pay the benefit or annuity payment to the appropriate unclaimed property department.