What's happening
This bill extends the deadline for insurers to respond to unclaimed life insurance benefit requests from thirty to sixty days.
Why it matters
Gives insurers double the time (60 days instead of 30) to respond to requests for unclaimed life insurance benefits, which could slow down payouts to beneficiaries or heirs.
Removes a faster 45-day response requirement that applied when insurers used third-party recordkeepers, meaning all cases now have the same extended timeline, potentially impacting claimants who previously benefited from faster processing.
Could affect the financial planning and immediate needs of families waiting on life insurance payouts after a policyholder’s death, as they may have to wait longer for funds.
May reduce administrative pressure on insurance companies, possibly lowering errors or missed responses, but at the cost of delayed access to benefits for those seeking unclaimed funds.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Extend Life Insurance Claim Time
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to insurance
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.230
- 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.
Extend Life Insurance Response Time
In Assembly Committee · Rules · Sponsor Pamela J. Hunter
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7393
IN SENATE
January 11, 2018
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to unclaimed life insurance benefits
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of paragraph 4 of subsection (h) of section 3240 of the insurance law, as amended by chapter 10 of the laws of 2013, is amended to read as follows:
Within [thirty] sixty days of receiving the request referenced in paragraph two of this subsection[, or within forty-five days of receiving the request where the insurer contracts with another entity to maintain the insurer's records,] the insurer shall:
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13951-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to unclaimed life insur- ance benefits
Purpose
This bill would lengthen the timeframe in which an insurer must complete a lost policy search in the lost policy finder system.
Summary of provisions
Section 1. Amends Insurance Law section 3240(h)(4) to increase the time- frame for insurers completing lost policy searches from 30-45 days to 60 days.
Section 2. Is the effective date.
Justification
This bill seeks to amend § 3240(h)(4) of the Insurance Law relating to the life insurance policy lost policy finder system. This law became effective in 2013 and required the Department of Financial Services (DFS), by itself or in conjunction with other state regulators, to develop a system for accommodating requests from individuals who are searching for a lost life insurance policy. The system would allow indi- viduals to submit a request to DFS if they believe that a deceased fami- ly member may have had a life insurance policy for which they have few, if any, details. The DFS shares the request with life insurers licensed in New York, which are then required to search their records for a possible match to the deceased family member.
Since the DFS developed their own system in 2013, the National Associ- ation of Insurance Commissioners (NAIC) has developed a nationwide lost policy finder system, which New York State is now requiring insurers licensed in the state to utilize. This new requirement has exponentially increased the volume of search inquiries that are being submitted to New York companies, many of which relate potentially to very old policies that are not being electronically stored and for which a manual search must be done. Likely because of these circumstances, the NAIC system affords companies up to 60 days to complete a search request submitted to them.
This bill would bring New York law into conformance with the requisite timeframe given to companies to complete a search under the NAIC system. Many life companies have expressed concern that the current timeframe provided under New York law (30-45 days) is too short, given the increase in volume that has occurred since New York joined the NAIC system, especially for potentially very old policies that are not acces- sible through an electronic system. This amendment will ease administra- tive burden for insurers while resulting in no diminution of service to the individual making the inquiry.
Legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.