Midland National Life Pays $3.3 Million Penalty Settlement for Failure to Pay Life Insurance Claims

SIOUX FALLS, S.D. - May 11, 2015 - PRLog -- Midland National and North American reached a $3.3 million settlement agreement with several states’ insurance departments regarding their failure to pay claims.  The settlement agreement with Midland National and North American focuses on Midland National and North American’s self-serving use of the Social Security Administration’s Death Master File (DMF).

Midland National and North American exploited the DMF to stop making annuity payments in an effort to increase their profits; however, Midland National and North American chose not to search for beneficiaries of life insurance policies who may be due benefits from Midland National and North American.

Midland National and North American have agreed to implement business reforms correcting this practice and to make a $3,300,000 payment, which will be disbursed among several states.  The settlement agreement requires implementation of the following business practices and reform measures:

•    Midland National and North American will now compare all company records against the DMF Update File every month and against the complete DMF file at least annually
•    Midland National and North American will now provide quarterly reports to specific states about the implementation and execution of the requirements of the Agreement for 36 months following its conclusion
•    Midland National and North American will submit to a follow-up examination to determine compliance 39 months following the conclusion of the settlement Agreement

While Midland National Life and North American’s unethical sales and claims practices, which have contributed to their ongoing legal problems, have not yet substantially affected their rating it is something for consumers and life insurance agents to watch.

Midland National is part of the Sammons Financial Group and is affiliated with the North American Company for Life and Health and Midland Annuity.
To research or review Midland National, simply Google "Midland National Life" reputation.

To learn more about Midland National Life's legal problems visit http://www.MidlandNationalLifeUpdate.se.