APNewsBreak: NY requires life insurance companies to start paying fully on …
Article from Washington Post:

ALBANY, N.Y. — New York regulators on Friday told insurance companies they must pay out fully when members of the military are killed in action as the standard practice, rather than automatically establishing a kind of checking account that provides interest to the companies.

State Financial Services Superintendent Benjamin Lawsky said New York is the first state to require the measure. He said families can often get a better return on interest if they invest the bulk payment, rather than draw down from “retained assets accounts” that are now commonly set up by insurance companies. Under the accounts, the families receive some of the return on interest and the company gets the rest.

There was no immediate comment on Friday’s directive from The Life Insurance Council of New York, Inc., a statewide industry lobbying group.

In 2010, Bloomberg Markets magazine reported the widespread legal practice involving $ 128 billion in families’ assets. Then-Attorney General Andrew Cuomo subpoenaed insurers to collect information on the accounts and U.S. Sen. Charles Schumer sought to require the Department of Veterans Affairs to end the practice.

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Related News:

EU’s Iran Sanctions Curb Asian Insurance for Crude Tankers
Article from BusinessWeek:
February 24, 2012, 9:07 AM EST

  • Indian Oil Charters Tanker to Ship Iranian Crude in Early March
  • China Buys Least Iran Crude in Five Months Amid Price Talks
  • U.K.’s Hague Says Halt in Iran Oil Sales Will Have ‘No Impact’
  • Iran Sanctions Tighten as OSG to Frontline Halt Crude Cargo
  • OSG Says Tanker Pool Will Halt Iran Trade After Sanctions

By Isaac Arnsdorf

(Adds lawyer’s comment in third paragraph.)

…………………continues on BusinessWeek
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