S T A T E O F N E W Y O R K
________________________________________________________________________
9845--B
R. R. 215
I N A S S E M B L Y
April 18, 2012
___________
Introduced by M. of A. MORELLE, WEINSTEIN -- read once and referred to
the Committee on Insurance -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
reported and referred to the Committee on Rules -- amended on the
special order of third reading, ordered reprinted as amended, retain-
ing its place on the special order of third reading
AN ACT to amend the insurance law, in relation to unclaimed life insur-
ance benefits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The insurance law is amended by adding a new section 3213-a
to read as follows:
S 3213-A. UNCLAIMED BENEFITS. (A) DEFINITIONS. FOR THE PURPOSES OF
THIS SECTION:
(1) "ACCOUNT" MEANS ANY MECHANISM, WHETHER DENOTED AS A RETAINED ASSET
ACCOUNT OR OTHERWISE, WHEREBY THE SETTLEMENT OF PROCEEDS PAYABLE TO A
BENEFICIARY UNDER A POLICY IS ACCOMPLISHED BY THE INSURER OR AN ENTITY
ACTING ON BEHALF OF THE INSURER WHERE THE PROCEEDS ARE RETAINED BY THE
INSURER PURSUANT TO A SUPPLEMENTARY CONTRACT.
(2) "DEATH INDEX" MEANS THE DEATH MASTER FILE MAINTAINED BY THE UNITED
STATES SOCIAL SECURITY ADMINISTRATION OR ANY OTHER DATABASE OR SERVICE
THAT IS AT LEAST AS COMPREHENSIVE AS THE DEATH MASTER FILE MAINTAINED BY
THE UNITED STATES SOCIAL SECURITY ADMINISTRATION AND THAT IS ACCEPTABLE
TO THE SUPERINTENDENT.
(3) "INSURED" INCLUDES AN INDIVIDUAL COVERED BY A POLICY OR AN ANNUI-
TANT WHEN THE ANNUITY CONTRACT PROVIDES FOR BENEFITS TO BE PAID OR OTHER
MONIES TO BE DISTRIBUTED UPON THE DEATH OF THE ANNUITANT.
(4) "INSURER" MEANS A LIFE INSURANCE COMPANY OR FRATERNAL BENEFIT
SOCIETY.
(5) "LOST POLICY FINDER" MEANS A SERVICE MADE AVAILABLE BY THE DEPART-
MENT ON ITS WEBSITE OR OTHERWISE DEVELOPED BY THE SUPERINTENDENT EITHER
ON HIS OR HER OWN OR IN CONJUNCTION WITH OTHER STATE REGULATORS, TO
ASSIST CONSUMERS IN LOCATING UNCLAIMED LIFE INSURANCE BENEFITS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15333-08-2
A. 9845--B 2
(6) "POLICY" MEANS A LIFE INSURANCE POLICY, INCLUDING POLICIES THAT
HAVE LAPSED OR BEEN TERMINATED, ANNUITY CONTRACT, OR A CERTIFICATE UNDER
A LIFE INSURANCE POLICY OR ANNUITY CONTRACT, OR A CERTIFICATE ISSUED BY
A FRATERNAL BENEFIT SOCIETY, UNDER WHICH BENEFITS ARE TO BE PAID UPON
THE DEATH OF THE INSURED.
(B) APPLICABILITY. THIS SECTION SHALL APPLY TO:
(1) EVERY POLICY ISSUED BY A DOMESTIC INSURER AND ANY ACCOUNT ESTAB-
LISHED UNDER OR AS A RESULT OF SUCH POLICY; AND
(2) EVERY POLICY DELIVERED OR ISSUED FOR DELIVERY IN NEW YORK BY AN
AUTHORIZED FOREIGN INSURER AND ANY ACCOUNT ESTABLISHED UNDER OR AS A
RESULT OF SUCH POLICY.
(3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS SUBSECTION, WITH
RESPECT TO A POLICY DELIVERED OR ISSUED FOR DELIVERY OUTSIDE THIS STATE,
A DOMESTIC INSURER MAY, IN LIEU OF THE REQUIREMENTS OF THIS SECTION,
IMPLEMENT PROCEDURES THAT MEET THE MINIMUM REQUIREMENTS OF THE STATE IN
WHICH THE POLICY WAS DELIVERED OR ISSUED, PROVIDED THAT THE SUPERINTEN-
DENT CONCLUDES THAT SUCH OTHER REQUIREMENTS ARE NO LESS FAVORABLE TO THE
POLICYOWNER AND BENEFICIARY THAN THOSE REQUIRED BY THIS SECTION.
(4) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS ONE AND TWO OF THIS
SUBSECTION, THIS SECTION SHALL NOT APPLY TO LAPSED OR TERMINATED POLI-
CIES WITH NO BENEFITS PAYABLE THAT WERE SEARCHED WITHIN THE THREE
HUNDRED SIXTY-FIVE DAYS PRECEDING THE EFFECTIVE DATE OF THIS SECTION OR
THAT WERE SEARCHED MORE THAN EIGHTEEN MONTHS PRIOR TO THE MOST RECENT
SEARCH CONDUCTED BY THE INSURER.
(C) IDENTIFYING INFORMATION. (1) EXCEPT AS SET FORTH IN PARAGRAPH TWO
OF THIS SUBSECTION, AT NO LATER THAN POLICY DELIVERY OR THE ESTABLISH-
MENT OF AN ACCOUNT AND UPON ANY CHANGE OF INSURED, OWNER, OR BENEFICI-
ARY, EVERY INSURER SHALL REQUEST INFORMATION SUFFICIENT TO ENSURE THAT
ALL BENEFITS OR OTHER MONIES ARE DISTRIBUTED TO THE APPROPRIATE PERSONS
UPON THE DEATH OF THE INSURED OR ACCOUNT HOLDER, INCLUDING, AT A MINI-
MUM, THE NAME, ADDRESS, SOCIAL SECURITY NUMBER, DATE OF BIRTH, AND TELE-
PHONE NUMBER OF EVERY OWNER, INSURED AND BENEFICIARY OF SUCH POLICY OR
ACCOUNT, AS APPLICABLE.
(2) WHERE AN INSURER ISSUES A POLICY OR PROVIDES FOR AN ACCOUNT BASED
ON DATA RECEIVED DIRECTLY FROM AN INSURED'S EMPLOYER, THE INSURER MAY
OBTAIN THE BENEFICIARY INFORMATION DESCRIBED IN PARAGRAPH ONE OF THIS
SUBSECTION AFTER RECEIVING THE DATA FROM THE INSURED'S EMPLOYER.
(D) STANDARDS FOR CROSS-CHECKING POLICIES. (1) EVERY INSURER SHALL USE
THE DEATH INDEX TO CROSS-CHECK EVERY POLICY AND ACCOUNT SUBJECT TO THIS
SECTION NO LESS FREQUENTLY THAN QUARTERLY, EXCEPT AS SPECIFIED IN
SUBSECTION (G) OF THIS SECTION. AN INSURER MAY PERFORM THE CROSS-CHECK
USING THE UPDATES MADE TO THE DEATH INDEX SINCE THE DATE OF THE LAST
CROSS-CHECK PERFORMED BY THE INSURER, PROVIDED THAT THE INSURER PERFORMS
THE CROSS-CHECK USING THE ENTIRE DEATH INDEX AT LEAST ONCE A YEAR. THE
SUPERINTENDENT MAY PROMULGATE RULES AND REGULATIONS THAT ALLOW AN INSUR-
ER TO PERFORM THE CROSS-CHECKS LESS FREQUENTLY THAN QUARTERLY, PROVIDED,
HOWEVER, THE INSURER MUST NOT BE ALLOWED TO PERFORM SUCH CROSS-CHECKS
LESS THAN SEMI-ANNUALLY.
(2) THE CROSS-CHECKS SHALL BE PERFORMED USING THE SOCIAL SECURITY
NUMBER, THE NAME, AND DATE OF BIRTH OF THE INSURED OR ACCOUNT HOLDER.
(3) IF AN INSURER ONLY HAS A PARTIAL NAME, SOCIAL SECURITY NUMBER,
DATE OF BIRTH, OR A COMBINATION THEREOF, OF THE INSURED OR ACCOUNT HOLD-
ER UNDER A POLICY OR ACCOUNT, THE INSURER SHALL USE THE AVAILABLE INFOR-
MATION TO PERFORM THE CROSS-CHECK.
A. 9845--B 3
(4) EVERY INSURER SHALL IMPLEMENT REASONABLE PROCEDURES TO ACCOUNT FOR
COMMON VARIATIONS IN DATA THAT WOULD OTHERWISE PRECLUDE AN EXACT MATCH
WITH A DEATH INDEX.
(E) MULTIPLE POLICY SEARCH PROCEDURES. (1) UPON RECEIVING NOTIFICATION
OF THE DEATH OF AN INSURED OR ACCOUNT HOLDER OR IN THE EVENT OF A MATCH
MADE BY A DEATH INDEX CROSS-CHECK PURSUANT TO SUBSECTION (D) OF THIS
SECTION, AN INSURER SHALL SEARCH EVERY POLICY OR ACCOUNT SUBJECT TO THIS
SECTION TO DETERMINE WHETHER THE INSURER HAS ANY OTHER POLICIES OR
ACCOUNTS FOR THE INSURED OR ACCOUNT HOLDER.
(2) EVERY INSURER THAT RECEIVES A NOTIFICATION OF THE DEATH OF THE
INSURED OR ACCOUNT HOLDER, OR IDENTIFIES A DEATH INDEX MATCH, SHALL
NOTIFY EACH UNITED STATES AFFILIATE AND ANY ENTITY THAT THE INSURER
CONTRACTS WITH WHICH MAY MAINTAIN RECORDS RELATING TO POLICIES COVERED
BY THIS SECTION OF THE NOTIFICATION OR VERIFIED DEATH INDEX MATCH, WHO
SHALL THEN PERFORM THE SEARCH REQUIRED BY PARAGRAPH ONE OF THIS
SUBSECTION.
(F) STANDARDS FOR LOCATING CLAIMANTS. (1) EVERY INSURER SHALL ESTAB-
LISH PROCEDURES TO REASONABLY CONFIRM THE DEATH OF AN INSURED OR ACCOUNT
HOLDER AND BEGIN TO LOCATE BENEFICIARIES WITHIN NINETY DAYS AFTER THE
IDENTIFICATION OF A POTENTIAL MATCH MADE BY A DEATH INDEX CROSS-CHECK OR
BY A SEARCH CONDUCTED BY THE INSURER PURSUANT TO SUBSECTION (E) OF THIS
SECTION. IF THE INSURER CANNOT LOCATE BENEFICIARIES WITHIN NINETY DAYS
AFTER THE IDENTIFICATION OF A POTENTIAL MATCH, THE INSURER SHALL CONTIN-
UE TO SEARCH FOR BENEFICIARIES UNTIL THE BENEFITS ESCHEAT TO THE STATE.
(2) ONCE THE BENEFICIARY OR BENEFICIARIES UNDER THE POLICY OR ACCOUNT
HAVE BEEN LOCATED, THE INSURER SHALL PROVIDE TO THE BENEFICIARY OR BENE-
FICIARIES THE INFORMATION NECESSARY TO MAKE A CLAIM PURSUANT TO THE
TERMS OF THE POLICY OR ACCOUNT. THE INSURER SHALL PROCESS ALL CLAIMS AND
MAKE PROMPT PAYMENTS AND DISTRIBUTIONS IN ACCORDANCE WITH ALL APPLICABLE
LAWS, RULES, AND REGULATIONS.
(3) NOTHING HEREIN SHALL PREVENT AN INSURER FROM REQUIRING SATISFAC-
TORY PROOF OF LOSS, SUCH AS A DEATH CERTIFICATE, FOR THE PURPOSE OF
VERIFYING THE DEATH OF THE INSURED.
(G) THIS SECTION SHALL NOT APPLY TO:
(1) GROUP POLICIES WHERE THE INSURER DOES NOT MAINTAIN RECORDS ON ITS
ADMINISTRATIVE SYSTEMS CONTAINING THE INFORMATION NECESSARY TO COMPLY
WITH THE REQUIREMENTS OF THIS SECTION;
(2) ANY POLICY OR CERTIFICATE THAT PROVIDES A DEATH BENEFIT UNDER AN
EMPLOYEE BENEFIT, GOVERNMENT OR CHURCH PLAN SUBJECT TO OR AS DEFINED
UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 (29 USC 1002),
AS PERIODICALLY AMENDED, OR UNDER ANY FEDERAL EMPLOYEE BENEFIT PROGRAM;
(3) ANY OTHER CIRCUMSTANCE AS DETERMINED TO BE APPROPRIATE BY THE
SUPERINTENDENT.
(H) LOST POLICY FINDER. (1) THE SUPERINTENDENT SHALL DEVELOP AND
IMPLEMENT A LOST POLICY FINDER TO ASSIST REQUESTORS IN LOCATING
UNCLAIMED LIFE INSURANCE BENEFITS. THE LOST POLICY FINDER SHALL BE
AVAILABLE ONLINE AND VIA OTHER MEANS, INCLUDING BUT NOT LIMITED TO THE
DEPARTMENT'S TOLL FREE TELEPHONE NUMBER. THE SUPERINTENDENT SHALL ASSIST
A REQUESTOR IN USING THE LOST POLICY FINDER, INCLUDING INFORMING THE
REQUESTOR OF WHAT INFORMATION AN INSURER MAY NEED TO FACILITATE RESPOND-
ING TO THE REQUEST.
(2) AS SOON AS PRACTICABLE BUT NO LATER THAN THIRTY DAYS AFTER RECEIV-
ING A REQUEST FROM A REQUESTOR VIA THE LOST POLICY FINDER, THE SUPER-
INTENDENT SHALL:
A. 9845--B 4
(I) FORWARD THE REQUEST TO ALL INSURERS DEEMED NECESSARY BY THE SUPER-
INTENDENT IN ORDER TO SUCCESSFULLY RESPOND TO THE CONSUMER'S REQUEST;
AND
(II) INFORM THE REQUESTOR IN WRITING THAT THE REQUEST HAS BEEN
RECEIVED AND FORWARDED TO ALL INSURERS DEEMED NECESSARY BY THE SUPER-
INTENDENT IN ORDER TO SUCCESSFULLY RESPOND TO THE REQUEST.
(3) UPON RECEIVING A REQUEST FORWARDED BY THE SUPERINTENDENT THROUGH A
LOST POLICY FINDER APPLICATION, EVERY INSURER SHALL SEARCH FOR POLICIES
AND ANY ACCOUNTS SUBJECT TO THIS SECTION THAT INSURE THE LIFE OF, OR ARE
OWNED BY, AN INDIVIDUAL NAMED AS THE DECEDENT IN THE REQUEST FORWARDED
BY THE SUPERINTENDENT.
(4) WITHIN THIRTY DAYS OF RECEIVING THE REQUEST REFERENCED IN PARA-
GRAPH TWO OF THIS SUBSECTION, THE INSURER SHALL:
(I) REPORT TO THE SUPERINTENDENT THROUGH THE LOST POLICY FINDER THE
FINDINGS OF THE SEARCH CONDUCTED PURSUANT TO PARAGRAPH THREE OF THIS
SUBSECTION;
(II) FOR EACH IDENTIFIED POLICY AND ACCOUNT INSURING THE LIFE OF, OR
OWNED BY, THE NAMED INSURED, PROVIDE TO A REQUESTOR WHO IS ALSO THE
BENEFICIARY OF RECORD ON THE IDENTIFIED POLICY OR ACCOUNT THE INFORMA-
TION NECESSARY TO MAKE A CLAIM PURSUANT TO THE TERMS OF THE POLICY OR
ACCOUNT;
(III) FOR EACH IDENTIFIED POLICY AND ACCOUNT INSURING THE LIFE OF, OR
OWNED BY, THE NAMED INSURED, PROVIDE TO A REQUESTOR WHO IS NOT THE BENE-
FICIARY OF RECORD ON THE IDENTIFIED POLICY OR ACCOUNT THE REQUESTED
INFORMATION TO THE EXTENT PERMISSIBLE TO BE DISCLOSED IN ACCORDANCE WITH
ANY APPLICABLE LAW, RULE, AND REGULATION AND TO TAKE SUCH OTHER STEPS
NECESSARY TO FACILITATE THE PAYMENT OF ANY BENEFIT THAT MAY BE DUE UNDER
THE IDENTIFIED POLICY OR ACCOUNT; AND
(5) THE SUPERINTENDENT SHALL, WITHIN THIRTY DAYS OF RECEIVING FROM ALL
INSURERS THE INFORMATION REQUIRED IN SUBPARAGRAPH (I) OF PARAGRAPH FOUR
OF THIS SUBSECTION, INFORM THE REQUESTOR OF THE RESULTS OF THE SEARCH.
(6) WHEN A BENEFICIARY IDENTIFIED IN PARAGRAPH FOUR OF THIS SUBSECTION
SUBMITS A CLAIM OR CLAIMS TO AN INSURER, THE INSURER SHALL PROCESS SUCH
CLAIMS AND MAKE PROMPT PAYMENTS AND DISTRIBUTIONS IN ACCORDANCE WITH ALL
APPLICABLE LAWS, RULES, AND REGULATIONS.
(7) WITHIN THIRTY DAYS OF THE FINAL DISPOSITION OF THE REQUEST, THE
INSURER SHALL REPORT TO THE SUPERINTENDENT THROUGH THE LOST POLICY
FINDER ANY BENEFITS PAID AND ANY OTHER INFORMATION REQUESTED BY THE
SUPERINTENDENT.
(8) EVERY INSURER SHALL ESTABLISH PROCEDURES TO ELECTRONICALLY RECEIVE
THE LOST POLICY FINDER APPLICATION REQUEST FROM, AND MAKE REPORTS TO,
THE SUPERINTENDENT AS PROVIDED FOR IN THIS SECTION. WHEN TRANSMITTED
ELECTRONICALLY, THE DATE THAT THE SUPERINTENDENT FORWARDS THE REQUEST
SHALL BE DEEMED TO BE THE DATE OF RECEIPT BY THE INSURER UNLESS THE DAY
IS A SATURDAY, SUNDAY OR A PUBLIC HOLIDAY, AS DEFINED IN SECTION TWEN-
TY-FIVE OF THE GENERAL CONSTRUCTION LAW AND, IN SUCH CASE, THE DATE OF
RECEIPT SHALL BE AS PROVIDED IN SECTION TWENTY-FIVE-A OF THE GENERAL
CONSTRUCTION LAW. THE SUPERINTENDENT MAY PROMULGATE RULES AND REGU-
LATIONS THAT ALLOW AN INSURER TO APPLY FOR AN EXEMPTION FROM THE
REQUIREMENT THAT IT ELECTRONICALLY RECEIVE THE LOST POLICY FINDER APPLI-
CATION REQUEST.
(I) REPORTS. EVERY INSURER SUBJECT TO THIS SECTION SHALL INCLUDE IN
THE REPORT REQUIRED UNDER SECTION SEVEN HUNDRED THREE OF THE ABANDONED
PROPERTY LAW ANY INFORMATION ON UNCLAIMED BENEFITS DUE PURSUANT TO THIS
SECTION THE NUMBER OF POLICIES AND ACCOUNTS THAT THE INSURER HAS IDENTI-
FIED PURSUANT TO THIS SECTION FOR THE PRIOR CALENDAR YEAR UNDER WHICH
A. 9845--B 5
ANY OUTSTANDING MONIES HAVE NOT BEEN PAID OR DISTRIBUTED BY DECEMBER
THIRTY-FIRST OF SUCH YEAR EXCEPT POTENTIAL MATCHES STILL BEING INVESTI-
GATED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (F) OF THIS SECTION. A
COPY OF THE REPORT SHALL ALSO BE FILED WITH THE SUPERINTENDENT.
(J) THE SUPERINTENDENT IS AUTHORIZED TO PROMULGATE ANY RULES AND REGU-
LATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION IN ACCORD-
ANCE WITH THE PROVISIONS OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.