Bill > H817

This bill amends existing law to establish new procedures for handling unclaimed life insurance benefits and annuity contracts. It defines key terms such as "Contract" (an annuity contract, with some exceptions for employment-based retirement plans), "Death Master File" (a database used to determine if someone has died), "Death Master File Match" (a match found in that database), "Knowledge of Death" (confirmation of death through a death certificate or a validated Death Master File Match), "Policy" (a life insurance policy with a death benefit, with exceptions for employee benefit plans, preneed funeral contracts, credit life insurance, and certain group policies), "Record Keeping Services" (when an insurer manages specific information for group policies), "Retained Asset Account" (an account where insurance proceeds are deposited for the beneficiary to access with check-writing privileges), and "Treasurer" (the state treasurer). Insurers are now required to regularly compare their policyholders and contract holders against the Death Master File to identify potential deaths. If a potential death is identified, insurers must make good-faith efforts to confirm the death, locate beneficiaries, and provide them with claim information, including necessary documentation like a death certificate. The bill also outlines specific procedures for handling variations in names and dates of birth to improve match accuracy and prohibits charging beneficiaries for Death Master File searches. If beneficiaries cannot be found after these efforts, the unclaimed benefits, along with any accrued interest, will be turned over to the state treasurer as unclaimed property. Failure to comply with these requirements, if it becomes a general business practice, will be considered a violation of Chapter 176D.