“Life insurance is an important safeguard for financial security for families and loved ones but only if it does not get added to the Unclaimed Property balance.” So said State Treasurer Rob McCord of Pennsylvania. “Each year, Treasury receives millions of dollars of unclaimed property, a considerable portion of which are unpaid or uncollected life insurance benefits,”
Mr. McCord knows what he’s talking about because he and his department have reunited $13.2 M in unclaimed life insurance benefits with the rightful owners. However, a lot more remains to be claimed with the help of the Treasury’s online database at www.patreasury.gov.
In the Great State of Pennsylvania, financial assets get paid to the Treasury after approximately 5 years of no contact with the owner, or in the case of life insurance policies, with the insured or the beneficiary. The “Holder Compliance Unit” within the Treasury’ has increased their efforts considerably to collect dormant life insurance proceeds and make insurers aware of their obligations under Pennsylvania’s unclaimed property law.
The annual deadline for insurance companies to report & remit dormant or unpaid life insurance proceeds is each year on April 15th… writing off unclaimed property as income does not relieve this liability
Since 2009, Treasury has collected $123 M in unpaid life insurance benefits from several of the nation’s largest insurers The, $13.2 M noted earlier is part of this total which has been paid to beneficiaries; it`s an ongoing effort to collect from the Insurance holder and find and payout the rightful claimant.
Of course Unclaimed Insurance Policies are just part of a bigger pool of Unclaimed Financial Assets that are collected from Organizations in accordance with legislation in order that the State can help find legal owners. Since January 2009, the Pennsylvania Treasury has collected more than $1.1 B in unclaimed property, returned more than $532 M in unclaimed property to the rightful owners, and adding about $617 M to the State’s General Fund via the Unclaimed Property Program. That leaves approximately $2.2 B in unclaimed property. That`s a lot of unclaimed property for a population of approximately 13 million
Have you ever lived in Pennsylvania or know someone else that has? Check out the database here www.patreasury.gov.