The state of Florida, along with several other states, has reached a $40 million settlement with a group of MetLife insurance companies over allegations of life insurance improprieties. All of that money is being used to pay for the states' investigation, but consumers may receive more than $500 million in other payments.
Consumers may benefit from new business practices that MetLife has agreed to use moving forward.
MetLife had apparently been using the Social Security Administration’s Death Master File to check to see if a policyholder has died only in cases where such a death would be beneficial to the insurance company. For example, MetLife allegedly used this Master File to stop annuity payments to deceased clients, but did not use it to issue life insurance payments to beneficiaries of the insured.