Hurricane Katrina: Legal Issues - Columbus School of Law

used. A company should be able to find a policy by the deceased’s name, address or social security number.
Beneficiarys may be able to obtain information by contacting the Mississippi Department of Insurance at 1-800-562-
2957 (in-state), 1-866-856-1982 (out-of-state), or by contacting the insurance department of any state where the
deceased lived.
What type of payments are made through life insurance?
Under most policies, the beneficiary of a life insurance policy can choose how they wish to be paid. However, if the
insured pre-arranged the payout, the beneficiary has no option. The following are types of payouts typically
available:
Lump sum: The beneficiary receives the entire benefit in a single payment.
Specific income provision: The company pays principal and interest to the beneficiary on a set schedule. These
payments are also referred to as installment payments.
Life income option: This option guarantees a certain level of income for life. The amount of the guaranteed
income will be calculated based on the death benefit, the beneficiary’s gender, and the beneficiary’s age.
Interest income option: The company periodically pays the beneficiary interest that is earned on the death
benefit. The death benefit is retained by the insurer and is paid to a second beneficiary upon the original
beneficiary’s death.
A beneficiary may want to consult a financial advisor to determine which option is best. [See Insurance Information
Institute, How Do I File a Life Insurance Claim? at http://www2.iii.org/individuals/life/help/locatelost/].
How can a beneficiary file a claim if there is no death certificate?
Filing a claim without a death certificate can create problems. Under Mississippi law, a missing person is not
presumed dead until he or she has been missing for seven years. Miss. Code. Ann. § 13-1-23. To file a claim without
a death certificate, the beneficiary should contact the life insurance company to inquire how it will handle this type of
situation. During the 9-11 disaster, many insurance companies accepted a sworn affidavit in lieu of a death
certificate. It is likely that many insurance carriers will institute emergency measures for processing claims for those
affected by Hurricane Katrina.
What if a deceased’s records were destroyed and the family does not know whether there was life insurance?
The family should go through the deceased’s records (bank records, credit card records, etc.) to look for payments to
a life insurance company and check the mail for any forthcoming renewal notices. The family may also check the
deceased’s past tax returns to determine whether the deceased reported interest income from a life insurance policy or
interest paid on a loan from an insurance company. Families may call an insurance company to see if the company
has a policy naming them as beneficiary. Typically, the beneficiary or deceased’s social security number is on the
policy for identification. [See Insurance Information Institute, Are There Ways to Locate A Lost Life Insurance
Policy? at http://www2.iii.org/individuals/life/help/locatelost/].
How long does it take to receive benefits?
Life insurance companies generally try to pay claims in a timely manner, often within 30 days of receiving a death
certificate.
What should a beneficiary do if a claim is denied?
Upon denial, the beneficiary should object to the denial in writing, and ask the insurer to reconsider. Any new
information pertinent to the claim should be provided. If a lawsuit is filed, it should be filed in a timely manner.
Certain policies require an internal review or appeal process, so you should carefully examine the policy and contact
an attorney.