2013 New York Consolidated Laws
ISC - Insurance
Article 32 - (3201 - 3240*2) INSURANCE CONTRACTS - LIFE, ACCIDENT AND HEALTH, ANNUITIES
3240 - Unclaimed benefits.

 
    * §  3240.  Unclaimed  benefits.  (a) Definitions. For the purposes of
  this section:
    (1) "Account" means: (A) 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 placing the proceeds into an
  account where the insurer retains those proceeds and the beneficiary has
  check or draft writing privileges; or (B) any  other  settlement  option
  relating  to  the manner of distribution of the proceeds payable under a
  policy.
    (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" means 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 with locating unclaimed life insurance benefits.
    (6) "Policy" means a life insurance policy;  an  annuity  contract;  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, including a policy that
  has lapsed or been terminated.
    (b) Applicability. (1) This section shall apply to a policy:
    (A) issued by a domestic insurer and any account established under  or
  as a result of such policy; or
    (B)  delivered  or  issued for delivery in this state by an authorized
  foreign insurer and any account established under or as a result of such
  policy.
    (2) Notwithstanding paragraph one of this subsection:
    (A) 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 insurer delivered or issued the policy, provided that
  the  superintendent  determines that such other requirements are no less
  favorable to the policy owner and beneficiary  than  those  required  by
  this section; and
    (B) this section shall not apply to a lapsed or terminated policy with
  no  benefits  payable  that  was  searched  within  the  eighteen months
  preceding the effective date of this section or that was  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,
  account  holder,  or  beneficiary,  an 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, account
  holder,  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 by communicating with the insured after  receiving  the  data
  from the insured's employer.
    (d)  Standards  for  cross-checking policies. (1) An 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  but
  not less frequently than semi-annually.
    (2)  The  cross-checks  shall  be  performed using: (A) the insured or
  account holder's social security number; or (B) where the  insurer  does
  not  know  the  insured  or account holder's 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,  then  the  insurer  shall  use  the
  available information to perform the cross-check.
    (4)  An  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) An insurer that receives a notification of the death of an insured
  or account holder, or identifies a death index match, shall notify  each
  United  States  affiliate,  parent,  or  subsidiary, and any entity with
  which the  insurer  contracts  that  may  maintain  or  control  records
  relating  to  policies  or  accounts  covered  by  this  section, of the
  notification or verified death index match. An insurer  shall  take  all
  steps  necessary  to  have  each affiliate, parent, subsidiary, or other
  entity perform the search required by paragraph one of this subsection.
    (f) Standards for locating claimants. (1) An 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, then the insurer shall
  continue to search for  beneficiaries  until  the  benefits  escheat  in
  accordance with applicable state law.
    (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, provided that if a beneficiary

  cannot obtain a death certificate,  then  an  insurer  shall  accept  an
  alternate form of satisfactory proof of loss.
    (g) This section shall not apply to:
    (1)  a  group  policy administered by the group policyholder where the
  insurer  does  not  maintain  or  control  the  records  containing  the
  information  necessary  to comply with the requirements of this section;
  or
    (2) any other circumstance as determined  to  be  appropriate  by  the
  superintendent in a regulation.
    (h)  Lost  policy  finder.  (1)  The  superintendent shall develop and
  implement a lost  policy  finder  to  assist  requestors  with  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  with using the lost policy finder, including informing the
  requestor  of  the  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:
    (A)  forward  the  request  to  all  insurers  deemed necessary by the
  superintendent in order to successfully respond to the request; and
    (B) inform the requestor in writing that the  superintendent  received
  the  request  and forwarded the request 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,  an  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, or within forty-five days of receiving
  the request where the insurer contracts with another entity to  maintain
  the insurer's records, the insurer shall:
    (A)  report  to  the superintendent through the lost policy finder the
  findings of the search conducted pursuant to  paragraph  three  of  this
  subsection;
    (B)  for  each  identified policy and account insuring the life of, or
  owned by, the individual named as the decedent in the  request,  provide
  to a requestor who is:
    (i) 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; and
    (ii) 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, or regulation and take such
  other steps necessary to facilitate the payment of any benefit that  may
  be due under the identified policy or account.
    (5) The superintendent shall, within thirty days of receiving from all
  insurers  the information required in subparagraph (A) 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
  claim or 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, an
  insurer shall report to  the  superintendent  through  the  lost  policy

  finder  any  benefits  paid  and  any other information requested by the
  superintendent.
    (8)  An  insurer  shall establish procedures to electronically receive
  the  lost  policy  finder  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; provided,
  however, that if the date is a Saturday, Sunday, or a public holiday, as
  defined in section twenty-four of the general construction law, then 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
  request  and  report  any  benefits  paid  or  other   information   the
  superintendent  requests  pursuant  to  section three hundred sixteen of
  this chapter.
    (i) Reports. An 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  and  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  also  shall  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 There are 2 § 3240's