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Who cares
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Sponsors
1 Co-sponsor
History
- Substituted by A9845B
- Amended on third reading 6943a
- Advanced to third reading
- 2nd report cal.
- 1st report cal.997
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to unclaimed life insurance benefits
Signed by Governor · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6943A
Title of bill
An act to amend the insurance law, in relation to unclaimed life insurance benefits
Purpose
The purpose of this bill is to add a new §3213-a of the insurance law to require life insurers to do regular matching of their in-force and lapsed life insurance policies and accounts against the U.S. Social Security Administration Death Master File of potentially deceased individuals and to make a good faith attempt to locate missing beneficiaries for unclaimed life insurance benefits that are positively determined as a result of that search.
Summary of provisions
This bill adds a new § 3213-a of the insurance law to require life insurers to perform a quarterly search of their life insurance policies and account records against the U.S. Social Security Administration Death Master File or the periodic updates there to. If a match is found, the insurer must make a good faith effort to confirm the death of the insured or account holder against other available records and information. Once there is reasonable evidence of death and a determination of benefits due has been made, life insurers will also have a duty to use good faith efforts to' locate the beneficiary, if they have not already been located. This bill also establishes exceptions to its provisions for certain group contracts, including where the insurer does not maintain the records on its administrative systems containing the information necessary to comply with the provisions of the bill. Finally, the bill would require the Superintendent to develop and implement a lost policy finder to assist requestors in locating unclaimed life insurance benefits
Justification
This bill is necessary to establish the rules for requiring that life insurers perform an ongoing review of their life insurance policy and account records against the U.S. Social Security Administration Death Master File, so as to identify potential beneficiaries of life insurance policies and retained asset accounts where the insured or account holder is determined to be deceased and where the beneficiary has not filed a claim. This bill was developed in response to examinations of insurer practices regarding unclaimed life insurance benefits and escheatment. Enactment of this bill will ensure that life insurers must make ongoing efforts to determine the death of a life insurance policy or account holder and make good faith efforts to locate the beneficiaries of such unclaimed policies or accounts before escheating that benefit to the state. The effort required of this bill by life insurers will result in the location of more life insurance beneficiaries so that they may receive the benefit due to them under the policy.
Legislative history
New bill.
Fiscal implications
None.
Effective date
This act will take effect on the 180th day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.