Insurance Companies Lose Unclaimed Property Case in Kentucky

The Franklin County Circuit Court in Kentucky rejected a challenge by Kemper Insurance Companies to the state’s new unclaimed property law. Kemper immediately filed a notice of appeal. The decision upholds a law enacted by Kentucky last year that requires life insurance companies to check their lists of insureds against the Social Security Administration’s Death Master File in an effort to locate more owners (beneficiaries). Industry practice has not been deemed to have been utilizing all publicly available data in their search for an owner process. (United Ins. Co. of Am. v. Kentucky (Ky. Cir. Ct. April 1, 2013))

Posted on May 23, 2013