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 more time to process unclaimed life insurance benefit requests. , which could affect how quickly beneficiaries receive their funds—potentially impacting families relying on these payments.
Removes the distinction for insurers who outsource record-keeping. (previously allowed 45 days for those contracting with third parties), creating a single 60-day timeline for all insurers and possibly simplifying compliance but delaying some responses.
May reduce administrative pressure on insurance companies. , potentially decreasing errors or incomplete responses, but at the cost of longer wait times for claimants.
Could influence consumer expectations and planning. , as individuals may need to adjust their timelines for receiving life insurance proceeds, which can be significant in times of financial need.
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Who cares
Headline styles
Give More Time for Claims
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Signed chap.468
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.70
- Substituted for A3075
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.249
Show 1 earlier action
- 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 Claim Time
Assembly Floor Calendar · Sponsor Pamela J. Hunter
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3637
2019-2020 Regular Sessions
IN SENATE
February 11, 2019
Introduced by Sens. BRESLIN, 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.
LBD05109-01-9
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 insurance 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
S7393 of 2017-18.
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.