For years it has been standard policy to contact your insurance provider when a loved one passes in order to collect the claims of the deceased. But thanks to new pressures states are putting on major insurance providers, from now on in the event of a death, they may be calling you.
Recent reports indicate that as much as 1 billion dollars in unclaimed policies resides with insurance companies due to the fact that relatives of the deceased often donâ€™t know which companies to call. In the past the monetary margin for error was more easily forgivenâ€”paper records and limited means of communication with policy holders automatically yielded a certain amount of technical inaccuracy. In recent years however, the rapid evolution of data-based technology has developed such that policies can be easily cross-checked with death reports; states are questioning whether the burden of responsibility should still be on the policy-holders when insurance companies now hold the keys to consumer efficiency.
Surprisingly, most major carriers are inclined to agree. From their point of view, it is far easier to pay out every claim to the proper beneficiary at the appropriate time than to have to send the money and paperwork to the stateâ€™s unclaimed property departmentsâ€”a painstaking, drawn out process that can take years. With both states and most major insurance companies on board, it looks like claims departments all over the country are about to undergo a significant change.