2005 Texas Insurance Code CHAPTER 1109. UNCLAIMED LIFE INSURANCE AND ANNUITY CONTRACT PROCEEDS

INSURANCE CODE

CHAPTER 1109. UNCLAIMED LIFE INSURANCE AND ANNUITY CONTRACT 
PROCEEDS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 1109.001. APPLICABILITY OF CHAPTER.  (a) This chapter 
applies to proceeds held and owing by a life insurance company 
engaged in the business of insurance in this state if:
		(1)  the last known address, according to the company's 
records, of the person entitled to the proceeds is located in this 
state;  and
		(2)  the proceeds have been unclaimed and unpaid for at 
least three years after the date, according to the company's 
records, that the proceeds became due and payable under a life or 
endowment insurance policy or annuity contract that has matured or 
terminated.
	(b)  If a person other than the insured or annuitant is 
entitled to the proceeds and that person's address is not known to 
the company or if the identity of the person entitled to the 
proceeds is not certain from the company's records, it is presumed 
that the last known address of the person entitled to the proceeds 
is the same as the last known address of the insured or annuitant 
according to the company's records.
	(c)  For purposes of Subsection (a), a life insurance policy 
not matured by proof of the death of the insured is considered to be 
matured and the proceeds of the policy are considered to be due and 
payable only if the policy is in force at the time the insured 
attained the limiting age under the mortality table on which the 
reserve is based.
	(d)  An annuity or other obligation, the payment of which is 
conditioned on the continued life of any individual, is not 
considered due and payable for purposes of Subsection (a) without 
proof that the individual was alive at the time or times required by 
the contract.
	(e)  Proceeds otherwise admittedly due and payable under a 
life or endowment insurance policy or annuity contract that has 
matured or terminated are considered to be held and owing even if 
the policy or contract has not been surrendered as required.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.002. ADMINISTRATION AND ENFORCEMENT;  RULES.  (a) 
This chapter shall be enforced in the manner provided for 
enforcement of Chapter 74, Property Code, under Subchapter H of 
that chapter.
	(b)  The comptroller may adopt rules necessary to administer 
this chapter.   

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.003. APPROPRIATIONS TO ADMINISTER CHAPTER.  To 
enforce and administer this chapter, the legislature may 
appropriate unclaimed money received under Chapter 74, Property 
Code, or under any other statute requiring the delivery of 
unclaimed property to the comptroller.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           

SUBCHAPTER B. DELIVERY OF PROCEEDS TO STATE


	§ 1109.051. COMPANY REPORT OF UNCLAIMED PROCEEDS.  (a) A 
life insurance company engaged in the business of insurance in this 
state that on June 30 holds unclaimed proceeds subject to this 
chapter shall file a report of those proceeds on or before the 
following November 1.  The report shall be filed in writing with the 
comptroller.
	(b)  The report is not required to include proceeds that have 
been paid to another state or other jurisdiction under any law of 
that state or jurisdiction relating to escheat or unclaimed money.
	(c)  The report must be signed and sworn to by an officer of 
the company and must state:
		(1)  in alphabetical order the full name of the insured 
or annuitant, the last known address of the insured or annuitant 
according to the company's records, and the policy or contract 
number;
		(2)  the amount due on the policy or contract according 
to the company's records;
		(3)  the date the proceeds became payable;                                    
		(4)  the name and last known address of each 
beneficiary or other person who, according to the company's 
records, may have an interest in the proceeds;  and
		(5)  any other identifying information the comptroller 
requires.            
	(d)  A life insurance company may report individual amounts 
of less than $50 in the aggregate without providing the information 
listed by Subsection (c).

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.052. DELIVERY OF PROCEEDS TO COMPTROLLER.  A life 
insurance company required to file a report under Section 1109.051 
shall deliver to the comptroller with the report all unclaimed 
proceeds described by the report.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.053. RETENTION OF RECORDS BY INSURANCE 
COMPANY.  (a) A life insurance company required to file a report 
under Section 1109.051 shall maintain a record of:
		(1)  the name and last known address, if any, of the 
insured, annuitant, or beneficiary;
		(2)  the policy or contract number;  and                                      
		(3)  the amount of the proceeds due on the policy or 
contract according to the company's records.
	(b)  The company shall maintain the record until at least the 
10th anniversary of the date the proceeds are required to be 
reported, regardless of whether the amount was reported in the 
aggregate.  The comptroller by rule may provide for a shorter 
retention period for the record.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.054. PUBLIC RECORD OF RECEIPT OF PROCEEDS.  (a) 
The comptroller shall maintain in the comptroller's office a public 
record of each delivery of unclaimed proceeds received under this 
chapter.
	(b)  Except as to amounts reported in the aggregate, the 
record must include:
		(1)  in alphabetical order, the name and last known 
address of each insured or annuitant and of each beneficiary or 
other person who, according to the life insurance company's 
reports, may have an interest in the proceeds;  and
		(2)  with respect to each policy or contract, the 
policy or contract number, the name of the company, and the amount 
of the unclaimed proceeds.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.055. STATE RESPONSIBILITY FOR PROCEEDS;  
INDEMNIFICATION OF COMPANY.  (a) On the delivery of unclaimed 
proceeds under this chapter:
		(1)  the state assumes custody of the proceeds for the 
benefit of each person entitled to receive the proceeds and for the 
safekeeping of the proceeds;  and
		(2)  the life insurance company is relieved of and held 
harmless by the state from any liability relating to the proceeds 
for a claim existing at the time of delivery of the proceeds to the 
comptroller or that arises or is made after delivery of the 
proceeds.
	(b)  A life insurance company that delivers proceeds to the 
comptroller under this chapter in good faith is relieved of 
liability relating to the proceeds to the extent of the value of the 
proceeds delivered for a claim existing at the time of delivery or 
that arises or is made after delivery.
	(c)  If a life insurance company delivers unclaimed proceeds 
to the comptroller under this chapter in good faith and, after 
delivery, a person claims the proceeds from the life insurance 
company or another state claims the proceeds under its laws 
relating to escheat or unclaimed property, the attorney general 
shall, on written notice of the claim, defend the life insurance 
company against the claim.  The life insurance company shall be 
indemnified against liability on the claim from the unclaimed money 
received under Chapter 74, Property Code, or under any other 
statute requiring delivery of unclaimed property to the 
comptroller.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.056. EXAMINATION OF COMPANY RECORDS.  (a) The 
comptroller may examine the records of a life insurance company to 
determine if the company is complying with this chapter.
	(b)  The comptroller may not make public any information 
obtained from an examination made under this section.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           

SUBCHAPTER C. PUBLIC NOTICE


	§ 1109.101. PUBLIC NOTICE OF UNCLAIMED PROCEEDS.  (a) In 
the calendar year following the year in which a report required by 
Section 1109.051 is made and in which the unclaimed proceeds 
described in the report are delivered to the comptroller under 
Section 1109.052, the comptroller may publish notice based on the 
information contained in the report.  Except as provided by 
Subsection (d), the comptroller shall publish the notice once in a 
newspaper published or having a general circulation in each county 
of this state in which the last known address of a person appearing 
to be entitled to any of those proceeds is located.
	(b)  The notice must:                                                          
		(1)  state in alphabetical order the name of each 
insured or annuitant under the policies or contracts and the 
municipality of the insured's or annuitant's last known address, if 
any;  and
		(2)  state that the unclaimed proceeds have been 
delivered to the comptroller as of the preceding November 1 and may 
be claimed from the comptroller.
	(c)  The publication requirements under Subchapter C, 
Chapter 74, Property Code, apply to publication of notice under 
this section.
	(d)  The comptroller may use a method of publishing notice 
different from that prescribed by Subsection (a) if the comptroller 
determines that the different method would be as likely to give 
actual notice to the person required to be named in the notice as 
the method prescribed by Subsection (a).

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           

SUBCHAPTER D. CLAIMS FOR PROCEEDS


	§ 1109.151. FILING OF CLAIM.  A person claiming to be 
entitled to unclaimed proceeds delivered to the comptroller under 
this chapter may at any time file a claim for the proceeds with the 
comptroller.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.152. DETERMINATION OF CLAIM.  The comptroller may 
accept or reject a claim made under Section 1109.151.

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.153. APPEAL.  (a) If the comptroller rejects a 
claim made under Section 1109.151 or does not act on a claim before 
the 91st day after the date the claim is filed, the claimant may 
file suit to recover the proceeds.
	(b)  The comptroller is the defendant in a suit filed under 
this section.    

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.           


	§ 1109.154. PAYMENT OF CLAIM.  The comptroller shall pay 
from unclaimed money received under Chapter 74, Property Code, or 
under any other statute requiring the delivery of unclaimed 
property to the comptroller, a claim that:
		(1)  the comptroller accepts;  or                                             
		(2)  a court orders the comptroller to pay.                                   

Added by Acts 2001, 77th Leg., ch. 1419, § 2, eff. June 1, 2003.