CT SB00171

Life insurance companies must provide beneficiaries with a complete written description of all available proceeds payment options in plain language and 12-point type before tender of proceeds (other than lump sum payments).

Insurance companies cannot use retained asset accounts to hold life insurance proceeds without disclosing specified information to beneficiaries in writing, including interest rates, fees, FDIC coverage, withdrawal limits, and contact information for the Insurance Department.

Life insurance companies must immediately return funds held in retained asset accounts to beneficiaries if no withdrawals or directives have been made over any continuous four-year period.

Insurance companies must report annually to the Insurance Commissioner regarding retained asset accounts for beneficiaries in the state, including account numbers, amounts, earnings, fees, and interest rate methodologies.

Violations of these disclosure and retained asset account requirements constitute unfair insurance practices subject to existing enforcement provisions.