A9845B-2011 Actions

• Dec 17, 2012: approval memo.21
• Dec 17, 2012: signed chap.495
• Dec 5, 2012: delivered to governor
• Jun 21, 2012: RETURNED TO ASSEMBLY
• Jun 21, 2012: PASSED SENATE
• Jun 21, 2012: 3RD READING CAL.997
• Jun 21, 2012: SUBSTITUTED FOR S6943A
• Jun 21, 2012: REFERRED TO RULES
• Jun 21, 2012: delivered to senate
• Jun 21, 2012: passed assembly
• Jun 18, 2012: amended on third reading 9845b
• Jun 14, 2012: ordered to third reading rules cal.215
• Jun 14, 2012: rules report cal.215
• Jun 14, 2012: reported
• Jun 12, 2012: reported referred to rules
• Jun 8, 2012: print number 9845a
• Jun 8, 2012: amend and recommit to insurance
• Apr 18, 2012: referred to insurance

A9845B-2011 Votes

A9845B-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 9845--B
 R. R. 215
 I N  ASSEMBLY
 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.

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