John Hancock is the first of what is sure to be many insurance companies with a class action lawsuit filed for not paying out life insurance benefits when the policy holder died.
The suit comes after an investigation into the practices of many major insurers and the money they remit to the state unclaimed property site. What was found, was the insurers were using the Social Security Death Index to determine when an annuitant died and they could stop making payments. However, they were not using the very same database to determine when a policy holder died and they needed to make a payment to the beneficiary.
Now, a class action lawsuit has been filed on behalf of the people who have been affected by this. This article gives the details. This is a good time to update your beneficiary contact information. In some cases, the person may have already died or it may be an ex-spouse or some other person that you don't want to receive this payout.