SB 274

This bill implements the Model Unclaimed Life Insurance Benefits Act

prepared by the National Conference of Insurance Legislators. Generally, the bill

addresses the obligations of an insurer providing life insurance policies, annuities,

or retained asset accounts with respect to identifying insureds who have died and

their beneficiaries.

Under the bill, an insurer is required to compare the records of its life insurance

policies, annuity contracts, or retained asset accounts with the federal Social

Security Administration's Death Master File. The bill specifies the conditions under

which a potential match between those records and the Death Master File occurs.

The bill specifies that when a potential match occurs, the insurer must, within 90

days, complete a good faith effort, documented by the insurer, to validate the death

of the insured or retained asset account holder against other available records or

information. The insurer must then determine whether benefits are owed under the

policy or contract and, if so, use good faith efforts to locate any beneficiaries and

provide those beneficiaries claims forms and instructions for making a claim. With

respect to group life insurance policies, insurers are only required to compare its

records with the Death Master File if the insurer maintains certain information

regarding the life insurance policy. The bill also requires insurers to implement

procedures to account for discrepancies in records, such as compound last names or

transposed months and dates in dates of birth. Finally, the bill prohibits an insurer

from charging a beneficiary any fees or costs associated with comparing its records

or verifying a match with the Death Master File.