(Bismarck, N.D. – Insurance News 360) – On Dec. 20, the North Dakota Insurance Commissioner announced recovery of more than $5.5 million in life insurance benefits for policyholders after examination of how more than two dozen insurers use the database of individuals who have died in the country, also known as the Social Security Administration’s Death Master File (DMF).

Examination revealed that many life insurance companies have used the DMF to search for and stop payments to deceased annuity holders but did not use it to provide benefits to named beneficiaries. Twenty eight examinations led to settlements and changes to search practices.

“This is a huge victory for North Dakota consumers,” said Insurance Commissioner Jon Godfread. “Searching for and locating life insurance beneficiaries is a critical part of this business. The Department is committed to working together with other states to continue investigating insurance companies’ use of the Death Master File because with the tools available to insurance companies today, there is no reason for them not to search for and locate policy beneficiaries.”

Before this announcement, Aflac and State Farm entered into settlements totaling more than $500,000 after coordinated multi-state examinations in North Dakota, California, Florida, New Hampshire, and Pennsylvania.

“There are many North Dakotans who don’t know they could be missing life insurance policies, or don’t know where to begin to locate them,” Godfread said. “The Life Insurance Policy Locator tool on our website is critical in helping reconnect people with lost life insurance policies. This tool is simple to use and easy to access, I encourage everyone to check it out.”

Source: North Dakota Insurance Department.