States Adopting NCOIL Unclaimed Life Insurance Benefits Act
In November 2011, the National Conference of Insurance Legislators (NCOIL) passed a resolution that supported a model law dealing with unclaimed property policies for insurers, now known as the Unclaimed Life Insurance Benefits Act. This resolution mandates the use of the Social Security Administration Death Master File (DMF) as a cross-reference against an insurers list of in-force life insurance policies and retained asset accounts each quarter.
Additionally, once the decedents have been identified and confirmed, the insurer must perform a good-faith effort to seek out and locate any beneficiaries and provide the necessary claim forms and instructions. In the event that the benefits go unclaimed, the model act also provides direction for life insurers to notify state treasury departments to properly escheat the funds.
While NCOIL has passed their resolution, it is still up to the individual states to adopt the legislation. Below is a map of states that currently have passed or proposed legislation to adopt policies similar to the Unclaimed Life Insurance Benefits Act, as well as a listing of current legislation.
|State Name||Bill No.||Date Introduced||Date Passed|
|Kentucky||KY BR 487, HB 135||12/16/2011||4/13/2012*|
|Maryland||MD SB 77||1/16/2012||5/2/2012|
|Alabama||AL HB 126||2/2/2012||5/15/2012|
|New York||NY SB 6943, AB 9845||4/16/2012||12/17/2012|
|North Dakota||HB 1171||1/11/2013||4/26/2013|
|New Mexico||SB 312||1/29/2013||4/1/2013|
|Rhode Island||HB 7031||1/10/2014*||Pending|
|Tennessee||HB 2427, SB 2516||2/4/2014||Pending|
We will continue to update this map and matrix as additional states propose similar legislation.
Keane is the most accomplished, knowledgeable, and comprehensive unclaimed property company in the country. Learn more about our unclaimed property services to the insurance industry. You can also read our Unclaimed Property Blog for additional insight. We also encourage you to subscribe to Keane’s Unclaimed Property Compliance Portal to stay up to date on all legislation, along with access to various escheat compliance resources.
*Rhode Island previously introduced House Bill 5452 in February 2013. No action was taken.
*Kentucky introduced HB 414 which seeks to amend the Unclaimed Life Insurance Benefits law which was previously passed in Kentucky.