New York State Department Of Financial Services AnnouncesLincoln Financial Group Has Paid $50.7 Million To Beneficiaries Of New York Policyholders For Lost Insurance Claims - Settlement With DFS Includes $1.5 Million Fine For Unfair Claims Settlement Practices In Violation Of New York Insurance Law

Financial Services Superintendent Maria T. Vullo today announced that Lincoln Financial Group has paid $50.7 million in restitution to policyholders of beneficiaries and a $1.5 million fine for lost insurance claims and for unfair claims settlement practices, as part of a consent order entered into with the Department of Financial Services (DFS).  The agreement between Lincoln National Corporation and its New York-licensed Lincoln Life & Annuity Company of New York, stems from the company’s merger with Jefferson-Pilot Corporation.  Lincoln self-reported that the company had lost track of thousands of policies after merging claims-processing systems with Jefferson-Pilot, which was followed by a DFS investigation that found that the company failed to adequately address early red flags related to the issue.  As part of the settlement, Lincoln will also continue to identify beneficiaries and pay claims, with interest, in accordance with New York Insurance Law.