News from Wall Street Journal:

Associated Press

ALBANY, N.Y. — New York is telling insurance companies they must pay out fully when a servicemember is killed in action rather than continue a common practice of setting up accounts that provide interest to the companies.

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. Under those “retained assets accounts” families receive some of the return on interest, the insurance company gets the rest.

Lawsky says Friday that families can still request the retained assets accounts.

—Copyright 2012 Associated Press

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