Opinion ID: 2675798
Heading Depth: 2
Heading Rank: 2

Heading: Global Resolution Agreement

Text: Several states conducted an audit of Hancock's handling of unclaimed property, which includes life insurance proceeds that have not been claimed by beneficiaries. These states have unclaimed property laws under which insurance companies are sometimes required to report and remit unclaimed insurance proceeds to the state. The criteria governing if and when unclaimed property must escheat to the state vary from state to state. As a result of this audit, Hancock entered into a Global Resolution Agreement (GRA) with Illinois and other states in June 2011 to alter its procedures for handling unclaimed property. Feingold attached the GRA to the complaint. The express purpose of the GRA is to set[] forth the terms and conditions intended to resolve the on-going unclaimed property audit of Hancock that Verus Financial LLC was conducting -4- on behalf of participating states. Hancock entered the GRA to resolve disputes about its obligations under participating states' unclaimed property laws. The GRA says that Hancock denies having violated any of those laws. The GRA outlined a process for Hancock to make payments to participating states based on the results of the unclaimed property audit. Hancock also agreed to adjust some of its business practices under the GRA. Neither Feingold nor the other members of the putative class are parties or signatories to that agreement. In response to Hancock's motion to dismiss, Feingold argued that the GRA was the source of Hancock's liability.