When any insured person dies, the life insurance company that issued the policy may place the death benefit proceeds into a retained asset account. These accounts accrue interest for the beneficiaries while they decide what they want to do with their benefits. Beneficiaries have full and immediate access to their benefits and can withdraw some or all of it at any time.
Retained asset accounts have existed since 1982. They were developed in response to requests from policyholders who wanted their life insurer to provide a service that would allow them to delay major financial decisions during an emotional and vulnerable time. Today, many insurers provide beneficiaries with this service for both group and individual life insurance policies. According to the National Association of Insurance Commissioners, there have been few if any complaints with regard to these accounts.
Letter to the Editor: ACLI letter to MSNBC
09/21/2010. ACLI letter to the president of MSNBC concerning commentary on retained asset accounts made by Dylan Ratigan (The Dylan Ratigan Show) on 09/16/2010.
What are people saying about Retained Asset Accounts?
Posted 8/19/2010. Read the positive comments about RAAs posted in response to “Are Life Insurers Playing Fair?" (Wall Street Journal, August 14, 2010). Subscription and password required.
News Release: ACLI Statement to the NAIC on Retained Asset Accounts
08/16/2010. The ACLI's Senior Vice President, Insurance Regulation & Chief Actuary Paul Graham provided the following statement at a meeting of the National Association of Insurance Commissioners Retained Asset Account Working Group.
Generic Resource: Retained Asset Accounts - Refuting False Claims
Posted 8/13/2010. On July 28, 2010, Bloomberg Markets ran “Fallen Soldiers' Families Denied Cash as Insurers Profit.” We set the record straight on the consumer protections, as well as the many advantages afforded beneficiaries using these accounts.
Letter to the Editor: ACLI letter to Investment News
Posted 8/6/2010. ACLI letter to the editor of Investment News in response to an article from 08/04/2010 - “Insurers' self-inflicted scandal." Letter published 08/15/2010.
Retained Asset Accounts FAQs
Posted 8/6/2010. Retained Asset Accounts Facts, Questions & Answers.
Audio: ACLI Press Availability on Retained Asset Account
Posted 8/4/2010. ACLI Press Availability on Retained Asset Accounts
Comments: CT Insurance Commissioner Letter on Retained Asset Accounts
Posted 8/3/2010. Letter from CT Insurance Commissioner Sullivan setting the record straight on the use of retained asset accounts. Commissioner Sullivan vows not to overreact in the wake of misleading media reports on the issue.
Fact Sheet: Retained Asset Accounts
Posted 8/2/2010. Fact sheet on retained asset accounts and how they are used.
News Release: ACLI Responds to Bloomberg Article on Retained Asset Accounts
Posted 7/28/2010. The ACLI issued the following statement in response to an article from Bloomberg Markets magazine on life insurers’ retained asset accounts.