Voya 2013 Annual Report Download - page 353

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
this litigation. The Court conducted a bench trial of the liability issues, which concluded on October 3, 2013 and
the Court has taken the matter under advisement.
Regulatory matters include considerable regulatory scrutiny regarding whether and to what extent life insurance
companies are using the United States Social Security Administration’s Death Master File (“SSDMF”) to
proactively ascertain when customers have deceased and to pay benefits even where no claim for benefits has
been made. The Company has received industry-wide and company-specific inquiries and is engaged in multi-
state market conduct examinations with respect to its claims settlement practices, including its use of Personal
Transition Accounts and of the SSDMF and compliance with unclaimed property laws. The Company also has
been reviewing whether benefits are owed and whether reserves are adequate in instances where an insured
appears to have died, but no claim for death benefits has been made. Some of the investigations, exams, inquiries
and audits could result in regulatory action against the Company. The potential outcome of such action is
difficult to predict but could subject the Company to adverse consequences, including, but not limited to,
settlement payments, additional payments to beneficiaries and additional escheatment of funds deemed
abandoned under state laws. The investigations may also result in fines and penalties and changes to the
Company’s procedures for the identification and escheatment of abandoned property and other financial liability.
On June 6, 2013, the Company executed a Global Resolution Agreement (“GRA”) establishing a process to
resolve the audit of the Company’s compliance with unclaimed property laws being conducted by a majority of
the states. The GRA became effective on July 26, 2013. The GRA establishes procedures for determining
whether amounts may be payable under certain life insurance policies, annuity contracts, and retained asset
accounts. It also establishes procedures for seeking to locate and pay beneficiaries and owners and for escheating
benefits (with interest in certain circumstances) to relevant jurisdictions.
On August 13, 2013, the Company executed a Regulatory Settlement Agreement (“RSA”) that settles a multi-
state market conduct examination (“Exam”) regarding benefit payment practices, procedures and policy
administration relating to claims, and use of the SSDMF, including efforts to identify owners and beneficiaries of
unclaimed benefits. The RSA establishes procedures for determining whether benefits may be payable under
certain life insurance policies, annuity contracts, and retained asset accounts. It also establishes procedures for
seeking to locate and pay beneficiaries and owners. The RSA became effective on September 4, 2013. Fifty
Departments of Insurance have executed the RSA.
18. Related Party Transactions
In the normal course of business, the Company enters into various transactions with affiliated companies. Parties
are considered to be related if one party has the ability to control or exercise significant influence over the other
party in making financial or operating decisions.
The following tables summarize income and expense from transactions with related parties for the periods
indicated:
Years Ended December 31,
2013 2012 2011
Income Expense Income Expense Income Expense
INGV......................................... $ 1.9 $ 6.1 $ 1.8 $ 13.5 $ 11.1 $ 38.9
ING Group ..................................... 7.4 18.0 13.9 8.2 — 78.1
ING Bank ...................................... 7.2 39.5 35.5 104.6 367.9 67.1
Other ......................................... 18.6 14.6 10.5 7.9 18.4 20.7
Total .......................................... $35.1 $78.2 $61.7 $134.2 $397.4 $204.8
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