NY Insurance Department Directs Recognition of Same-Sex Marriages
If you work in the Lesbian, Gay, Bisexual and Transgender (LGBT) markets you’re probably already aware of an important directive issued by the New York State Insurance Department. On November 21, 2008, the Insurance Department’s Office of General Counsel issued a General Counsel Opinion which concluded that same-sex marriages performed in states or countries which allow such unions must be recognized as valid under New York Insurance Law. On the same day, the Department of Insurance followed with Circular 27, essentially repeating and explaining the Opinion letter, and directed (and mildly threatened) insurers that for all purposes of New York insurance laws, same-sex marriages must be treated the same as opposite-sex marriages.
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Insurance Company Guarantees Exceed Bank Deposit FDIC Limits
One of the consequences the financial calamity hitting banks across the US is that Congress increased the FDIC insurance limit from $100,000 to $250,000 through the end of 2009. FDIC.GOV Great news for bank depositors, which the banks are thrilled to point out to their customers. Unfortunately, New York insurance companies are not allowed to advertise the fact that their customers’ deposits into life insurance and annuities are similarly protected for twice that amount, up to $500,000! More importantly, if someone has life insurance contracts or annuity contracts at MetLife and Prudential and John Hancock, for example, and for some reason all three companies became insolvent, the $500,000 limit applies to each company, so total coverage in this hypothetical is actually $1,500,000!!
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