States Adopting NCOIL Unclaimed Life Insurance Benefits Act
COMPLIANCE UPDATE: This post was originally published in February 2012 and has since been regularly updated to reflect legislative activity.
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. We will continue to update this map as additional states propose or pass similar legislation.
At the close of 2016, or roughly five years since the inception of the NCOIL Model Act, twenty-three (23) states had passed unclaimed life insurance benefits legislation. It is anticipated that more state legislators will continue to advocate for changes to either state unclaimed property laws or insurance codes to require these regular comparisons of the Death Master File and efforts to seek out and locate beneficiaries.
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.
Currently trying to change your organization’s unclaimed property policies? Concerned you might not be in compliance? Download our free whitepaper, “Insurance Regulations & Compliance” below – and see how your organization stacks up.