SCS/SB 863 - This act creates the Unclaimed Life Insurance Benefits Act which provides the process of identifying deceased insureds and payments of life insurance death benefits for policies issued after January 1, 2017. This act requires insurers to compare their insureds in-force life insurance policies, contracts, and retained asset accounts against the United States Social Security Administration's Death Master File on at least a semiannual basis to identify potential matches of policies requiring payment. Potential matches must be investigated in a good-faith effort by insurers to confirm the death of the insured, determine if benefits are due in accordance with the applicable policy, and attempt to locate the beneficiary and provide appropriate claims forms. Insurers are only required to confirm the possible death of an insured in group life insurance policies under certain circumstances. If beneficiaries or owners of the policies cannot be found the benefits shall escheat to the state as unclaimed property. The failure to comply with these provisions with such frequency as to constitute a general business practice shall constitute an unfair trade practice, but shall not give rise to a private cause of action.
This act is similar to HCS/HB 2150 (2016) and HB 2683 (2016)