Senate File 2342 H-8276 Amend the amendment, H-8228, to Senate File 2342, 1 as amended, passed, and reprinted by the Senate, as 2 follows: 3 1. Page 1, by striking lines 3 through 25 and 4 inserting: 5 < ___. Page 17, by striking lines 22 through 29. 6 ___. Page 17, after line 31 by inserting: 7 < DIVISION ___ 8 UNCLAIMED LIFE INSURANCE DEATH BENEFITS 9 Sec. ___. NEW SECTION . 507B.4C Unclaimed life 10 insurance. 11 1. Purpose. The purpose of this section is to 12 require complete and proper disclosure, transparency, 13 and accountability relating to any method of payment 14 for life insurance death benefits regulated by the 15 commissioner. 16 2. Definitions. As used in this section, unless 17 the context otherwise requires: 18 a. “Account owner” means the owner of a retained 19 asset account who is a resident of this state. 20 b. “Annuity” means an annuity contract issued in 21 this state. “Annuity” does not include any annuity 22 contract used to fund an employment-based retirement 23 plan or program where the insurer takes direction from 24 the plan sponsor or plan administrator. 25 c. “Authorized person” means a policy owner, 26 insured, annuity owner, annuitant, or account holder, 27 as applicable under a policy, annuity, or retained 28 asset account. 29 d. “Death master file” means the United States 30 social security administration’s death master file 31 or any other database or service that is at least as 32 comprehensive as the United States social security 33 administration’s death master file for determining that 34 a person has died. 35 e. “Death master file match” means a search of 36 the death master file that results in a match of an 37 authorized person’s name and social security number or 38 an authorized person’s name and date of birth. 39 f. “Insurer” means a life insurance company 40 regulated under chapter 508. 41 g. “Policy” means any policy or certificate of life 42 insurance issued in this state. “Policy” does not 43 include any of the following: 44 (1) A policy or certificate of life insurance which 45 provides a death benefit under an employee benefit 46 plan subject to the federal Employee Retirement Income 47 Security Act of 1974, Pub. L. No. 93-406, as codified 48 at 29 U.S.C. §1002 et seq. 49 (2) A policy or certificate of life insurance which 50 -1- H8228.4033 (4) 85 ec/tm 1/ 5 #1.

provides a death benefit under an employee benefit plan 1 subject to a federal employee benefit program. 2 (3) A policy or certificate of life insurance 3 which is used to fund a preneed plan for cemetery 4 merchandise, funeral merchandise, funeral services, or 5 a combination thereof. 6 (4) A policy or certificate of credit life or 7 accidental death insurance. 8 (5) A policy issued to a group master policyowner 9 for which the insurer does not provide recordkeeping 10 services. 11 h. “Recordkeeping services” means services provided 12 by an insurer who has entered into an agreement with a 13 group policy customer to be responsible for obtaining, 14 maintaining, and administering in the insurer’s own 15 recordkeeping systems at least all of the following 16 information about each individual insured under 17 the insured’s group insurance contract or a line of 18 coverage thereunder: 19 (1) Social security number or name and date of 20 birth. 21 (2) Beneficiary designation information. 22 (3) Coverage eligibility. 23 (4) Benefit amount. 24 (5) Premium payment status. 25 i. “Retained asset account” means an 26 interest-bearing account set up by an insurer in 27 the name of the beneficiary of a policy or annuity upon 28 the death of the insured. 29 3. Insurer duties. 30 a. For any in-force policy, annuity, or retained 31 asset account issued for delivery in this state for 32 which the insurer has not previously been notified of 33 a claim, an insurer shall perform a comparison of such 34 policy, annuity, or retained asset account against the 35 death master file, on at least a semiannual basis, to 36 identify potential death master file matches. 37 (1) An insurer may comply with the requirements of 38 this subsection by using the full death master file for 39 the initial comparison and thereafter using the death 40 master file update files for subsequent comparisons. 41 (2) Nothing in this section shall be interpreted to 42 limit the right of an insurer to request a valid death 43 certificate as part of any claims validation process. 44 b. If an insurer learns of the possible death of an 45 authorized person through a death master file match or 46 otherwise, the insurer shall, within ninety days, do 47 all of the following: 48 (1) Complete a good faith effort, which shall be 49 documented by the insurer, to confirm the death of the 50 -2- H8228.4033 (4) 85 ec/tm 2/ 5

authorized person against other available records and 1 information. 2 (2) Review the insurer’s records to determine 3 whether the deceased authorized person had purchased 4 any other products from the insurer. 5 (3) Determine whether benefits may be due in 6 accordance with the applicable policy, annuity, or 7 retained asset account. 8 (4) If the beneficiary or an authorized person 9 has not communicated with the insurer within the 10 ninety-day period, take reasonable steps, which shall 11 be documented by the insurer, to locate and contact any 12 beneficiary or other authorized person on the policy, 13 annuity, or retained asset account, including sending 14 the beneficiary or other authorized person information 15 regarding the insurer’s claims process and regarding 16 the need to provide an official death certificate, if 17 applicable under the policy, annuity, or retained asset 18 account. 19 c. Every insurer shall implement procedures to 20 account for all of the following: 21 (1) Common nicknames, initials used in lieu of a 22 first or middle name, use of a middle name, compound 23 first and middle names, and interchanged first and 24 middle names. 25 (2) Compound last names, maiden or married names, 26 and hyphens, blank spaces, or apostrophes in last 27 names. 28 (3) Transposition of the month and date portions of 29 the date of birth. 30 (4) Incomplete social security numbers. 31 d. An insurer may disclose minimum necessary 32 personal information about a beneficiary or authorized 33 person to an individual or entity whom the insurer 34 reasonably believes may be able to assist the insurer 35 in locating the beneficiary or authorized person 36 entitled to payment of the claims proceeds. 37 e. An insurer or its service provider shall not 38 charge a beneficiary or authorized person any fees 39 or costs associated with a death master file search 40 conducted pursuant to this section. 41 f. The benefits from a policy, annuity, or retained 42 asset account, plus any applicable accrued interest, 43 shall first be payable to designated beneficiaries 44 or authorized persons, and in the event that the 45 beneficiaries or authorized persons cannot be found, 46 shall be reported and remitted to the state as 47 unclaimed property pursuant to chapters 556 and 633. 48 4. Rules. The commissioner shall adopt rules to 49 administer the provisions of this section. 50 -3- H8228.4033 (4) 85 ec/tm 3/ 5

5. Orders. The commissioner may issue an order 1 doing any of the following: 2 a. Limiting the death master file comparisons 3 required under subsection 3, paragraph “a” , to an 4 insurer’s electronic searchable files or approving a 5 plan and timeline for conversion of an insurer’s files 6 to electronic searchable files. 7 b. Exempting an insurer from the death master file 8 comparisons required under subsection 3, paragraph “a” , 9 or permitting an insurer to perform such comparisons 10 less frequently than semiannually upon a demonstration 11 of financial hardship by the insurer. 12 c. Phasing in requirements for compliance with this 13 section according to a plan and timeline approved by 14 the commissioner. 15 6. Unfair trade practice. Failure to meet any 16 requirement of this section with such frequency as to 17 constitute a general business practice is an unfair 18 method of competition and an unfair or deceptive act 19 or practice in the business of insurance under this 20 chapter. 21 7. Insurer unclaimed property reporting. 22 a. If an insurer identifies a person as deceased 23 through a death master file match as described in 24 subsection 3, paragraph “a” , or other information 25 source, and validates such information through a 26 secondary information source, the insurer may report 27 and remit the proceeds of the policy, annuity, or 28 retained asset account due to the state prior to the 29 dates required for such reporting and remittance under 30 chapter 556, without further notice to or consent by 31 the state, after attempting to contact any beneficiary 32 under either of the following circumstances: 33 (1) The insurer is unable to locate a beneficiary 34 who is located in this state under the policy, annuity 35 contract, or retained asset account, after conducting 36 reasonable search efforts of up to one year after the 37 insurer’s validation of the death master file match. 38 (2) No beneficiary or person, as applicable for 39 unclaimed property reporting purposes under chapter 40 556, has a last known address in this state. 41 b. Once the insurer has reported upon and remitted 42 the proceeds of the policy, annuity, or retained 43 asset account to the state pursuant to chapter 556, 44 the insurer is relieved from any and all additional 45 liability to any beneficiary or authorized person 46 relating to the proceeds reported upon and remitted. 47 Sec. ___. EFFECTIVE DATE. This division of this 48 Act takes effect July 1, 2015. > 49 ___. By striking page 17, line 34, through page 18, 50 -4- H8228.4033 (4) 85 ec/tm 4/ 5