SB768 Summary

• Creates the Unclaimed Life Insurance Benefits Act to regulate life insurance death benefit payments and require disclosure, transparency, and accountability for benefit payout methods subject to State Insurance Department regulation.

• Requires insurers to compare in-force policies and retained asset accounts against death master files semiannually and confirm deaths within 90 days of a match by reviewing available records and locating beneficiaries.

• Mandates insurers make good faith efforts to locate beneficiaries and provide them with claim forms and instructions, with no fees charged to beneficiaries for death master file searches or verification.

• Establishes that unclaimed benefits and accrued interest must escheat to the state as unclaimed property if beneficiaries cannot be found, with insurers notifying the Auditor of State upon expiration of the statutory escheat period.

• Applies to life insurance policies issued after June 30, 2016; violations constitute unfair trade practices subject to the Trade Practices Act but do not create private rights of action.