On CBS' "60 Minutes," Florida's insurance commissioner highlights an eye-opening pattern of insurance companies failing to pay benefits despite knowing a policyholder has died.

Lesley Stahl reports that that 25 insurance companies, without acknowledging wrongdoing, are paying back $7.5 billion in death benefits across the country. An additional 35 companies haven't settled or are being investigated, CBS News reports at 7 p.m. Sunday.

Kevin McCarty, the insurance commissioner of Florida, is a key source for the story. He led the task force investigating the industry, and he leaving his Florida post in May.

McCarty's view of the insurance problems: "My first instinct was of course is unleash the hounds of hell, let's go after them, and expose them for the unconscionable, indefensible behavior that was going on."

The report examines how insurers have said that policyholders' beneficiaries must file a claim to collect the death benefit. Yet beneficiaries often don't know about the policies.

McCarty explains the insurance companies don't contact the beneficiaries despite knowing the policyholder had died.

"What we found is that companies have actual knowledge in their files that people have died, yet they have neglected to initiate an investigation and pay the claim," McCarty tells Stahl.

Many insurance companies have used knowledge of a death, gained the Social Security Administration's Death Master File, to cut off benefits, McCarty tells "60 Minutes."

Insurers will end annuity benefits when a policyholder died but not tell beneficiaries they're owed a death benefit.

"I'm here to say that you have a responsibility to investigate a claim if you know someone has died," McCarty said.

McCarty bemoans many insurers' practice with whole life policies: Some companies continue to make premium payments to themselves using their dead customers' money. The companies can drain accrued cash value to pay themselves premiums.