2012 New York Consolidated Laws
ISC - Insurance
Article 32 - (3201 - 3239) INSURANCE CONTRACTS - LIFE, ACCIDENT AND HEALTH, ANNUITIES
3213-A - Unclaimed benefits.

 
    * §  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
  annuitant 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
  department  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.
    (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
  established 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
  superintendent  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
  policies 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
  establishment  of  an  account and upon any change of insured, owner, or
  beneficiary, 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 minimum, the name, address, social security number, date
  of  birth,  and telephone 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
  insurer  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
  holder under a policy or account, the insurer shall  use  the  available
  information to perform the cross-check.
    (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
  establish 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 continue 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
  beneficiaries 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
  satisfactory 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
  responding to the request.
    (2) As soon as  practicable  but  no  later  than  thirty  days  after
  receiving  a  request  from  a requestor via the lost policy finder, the
  superintendent shall:
    (i) forward the request  to  all  insurers  deemed  necessary  by  the
  superintendent  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
  superintendent 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
  paragraph 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
  information 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
  beneficiary  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
  twenty-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
  regulations  that  allow  an  insurer to apply for an exemption from the
  requirement that  it  electronically  receive  the  lost  policy  finder
  application 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
  identified  pursuant  to  this section for the prior calendar year under
  which any outstanding monies  have  not  been  paid  or  distributed  by
  December  thirty-first of such year except potential matches still being
  investigated 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
  regulations  necessary  to  implement  the provisions of this section in
  accordance with the provisions of  the  state  administrative  procedure
  act.
    * NB Effective June 15, 2013