Good morning to our viewers. Today, we have the honor of hosting Mike Chaney, the Insurance Commissioner for the state of Mississippi.
“Mike, welcome to the show,” I said.
“Candi, it’s a pleasure to be here. I appreciate the opportunity,” Commissioner Chaney responded. “I love the Delta. As a Vicksburg native, I have a vested interest.”
We discussed the recent activity within the Insurance Commissioner’s Office and some key data relevant to Mississippi residents. Last year, the department handled 10,000 inquiries via email, phone calls, and written complaints. This resulted in the recovery of approximately $10 million for consumers. Moreover, nearly 1,700 Mississippians utilized the department’s life insurance policy locator, successfully recovering over $37 million in the last year.
“That feels like an extraordinary amount of money,” I noted. “How is it possible for such significant sums to remain unclaimed?”
Commissioner Chaney explained the process: “Sometimes, an individual contacts us, stating that their parent or another relative had an insurance policy, but they can’t locate it or documentation for it. They may know the policy was paid for years, like a ’20-pay’ line and although the insured person has passed, they are unable to find evidence of the policy’s location. This used to be a complicated problem before 2016 when most of that unclaimed money, after three years, reverted to the state treasury. However, we decided to focus more on what you can do to help the consumer or a beneficiary find the life insurance that is rightfully theirs. We developed a life insurance locator, which was implemented by the National Association of Insurance Commissioners. It was put online in Mississippi in 2016. Using that locator, people can enter a Social Security number, the parent’s name, and the company they believe had the policy. This data is matched with the Death Master file from the Social Security Administration to determine if a valid life insurance policy exists and can be claimed. We’ve found $47 million for consumers so far by doing this.”
I inquired, “Do insurance companies have a responsibility to conduct annual checks to proactively search for unclaimed claims?”
“Indeed, they do have those responsibilities Candi,” Commissioner Chaney affirmed. “While there is a range in their thoroughness in that, they mostly try to do the right thing. When someone passes, and the insurance company is not notified, that might cause an impediment.”
The Insurance Commisioner’s office has also been working on educating Mississippians about home insurance. There’s often a significant difference between actual cash value coverage and replacement cost coverage. I asked the Commissioner to explain.
“For example, suppose someone built a house 20 years ago,” he explained. “The location doesn’t change the cost, and that house was built for $100,000. To replace that same house today might cost $200,000. The key is, do you have enough insurance to cover the current replacement cost? For example, if you have a $20,000 mortgage, some people think they only need to insure up to the value they owe. However, if a disaster such as a fire or storm destroys the home, and you only have $100,000 in coverage, you’re left in a difficult situation. You require replacement cost because the property could cost $200,000 to replace. As a regulator, I oversee insurance companies to verify this information. Even if the house is valued on the tax rolls at $200,000, the replacement cost is based on what it actually costs to rebuild. This protects the consumer.”
“If someone has questions, problems, or complaints on the matter, how can they reach you?”
“They can call us at 1-800-560-2295, and we will help them. Or they can visit our website at www.mid.ms.gov to file a complaint or inquiry,” the Commissioner concluded.
We thank Mr. Mike Chaney, the Mississippi Insurance Commissioner for his time and the valuable information he provided.
