New York Said to Need Payments After Fallen Soldier Story

Life insurers will face tighter restrictions against holding beneficiaries’ funds under a directive to be made by the New York Department of Financial Services, according to a person with knowledge of the plan.

Insurers will be required to issue a check to the survivor as the default option, under a mandate that will probably be made by the end of the month, said the person, who declined to be identified because there was no statement from the regulator. The carriers will only be able to hold the funds if a beneficiary authorizes the use of a retained asset account, the person said.