HB126 Summary

• Establishes the Unclaimed Life Insurance Benefits Act requiring insurers to search the Social Security Administration's Death Master File against in-force life insurance policies, annuity contracts, and retained asset accounts at least semi-annually, with initial comparison completed within three years and ongoing comparisons every three years thereafter.

• Requires insurers to complete commercially reasonable efforts within 90 days of a death master file match to confirm the death and locate beneficiaries, provide claim forms, and contact designated beneficiaries without charging any fees or costs.

• Mandates that after completing required verification efforts, insurers first pay benefits to designated beneficiaries, and any unclaimed benefits escheat to the state as unclaimed property after the statutory period expires if beneficiaries cannot be located.

• Requires insurers to notify the State Treasurer and submit unclaimed life insurance benefits, annuity death benefits, or retained asset accounts plus accrued interest to the State Treasurer pursuant to Alabama's unclaimed property statutes.

• Effective date: January 1, 2014.