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AP: NY requires full vets' death benefit payoutsAPNewsBreak: NY requires life insurance companies to start paying fully on active duty deaths
ALBANY, N.Y. (AP) ' New York is telling insurance companies they must pay out fully when a member of the military is killed in action rather than continue a common practice of setting up accounts that allow the companies to collect interest.
State Financial Services Superintendent Benjamin Lawsky says New York is the first state to require the measure.
He says families can often get a better return on interest if they invest the bulk payment, rather than draw down from accounts set up by insurance companies. Those "retained assets accounts" allow families to receive some of the return on interest, but the insurance company gets the rest.
Lawsky said Friday that families can still request the retained assets accounts.
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