Genworth Life Insurance Company has reached a settlement with the California Department of Insurance as well as other state insurance departments, over the use of the Social Security Administration's Death Master File database.
The recent multistate settlement ensures protection for policyholders and beneficiaries, as Genworth has agreed to business practice reforms with the regulators.
California Department of Insurance commissioner Dave Jones said, "I am pleased with the outcome of this agreement as it is another success in our nationwide effort to reform life insurance industry practices regarding the use of the Death Master database.
"I am steadfast in my commitment to consumers and will ensure companies make good on their promises to their policyholders."
Under the terms of the settlement, Genworth has agreed to pay $1.9m to state insurance departments; California will receive roughly $175,000 settlement amount.
The life insurer has also agreed to implement various business practice reforms, including using the Death Master File database to search its records for deceased life insurance policyholders so beneficiaries may be paid.
The regulators said that life insurers have used the Death Master File to search for and stop payments to annuity holders, but did not use the database to identify deceased life insurance policyholders whose beneficiaries are owed life insurance proceeds.