Bill > H505

This bill amends Chapter 175 of the General Laws to establish new requirements for life insurance companies regarding unclaimed life insurance benefits. The key provisions include: 1) Requiring life insurers to regularly compare their in-force policies and accounts against the Social Security Administration's Death Master File to identify potential matches of deceased insureds; 2) Mandating that insurers take steps to confirm deaths and locate beneficiaries within 90 days of a match, and provide claim forms as necessary; 3) Prohibiting insurers from charging fees to beneficiaries for death verification; 4) Requiring unclaimed benefits to be escheated to the state as unclaimed property if beneficiaries cannot be located; and 5) Establishing that failure to comply with these requirements can be considered an unfair business practice under Chapter 176D. The bill would take effect on January 1, 2016.

Business and Industry

https://malegislature.gov/Bills/190/H505