House File 2473 H-8318 Amend the amendment, H-8315, to House File 2473 as 1 follows: 2 1. Page 17, after line 30 by inserting: 3 < DIVISION ___ 4 UNCLAIMED LIFE INSURANCE DEATH BENEFITS 5 Sec. ___. NEW SECTION . 507B.4C Unclaimed life 6 insurance. 7 1. Purpose. The purpose of this section is to 8 require complete and proper disclosure, transparency, 9 and accountability relating to any method of payment 10 for life insurance death benefits regulated by the 11 commissioner. 12 2. Definitions. As used in this section, unless 13 the context otherwise requires: 14 a. “Account owner” means the owner of a retained 15 asset account who is a resident of this state. 16 b. “Annuity” means an annuity contract issued in 17 this state. “Annuity” does not include any annuity 18 contract used to fund an employment-based retirement 19 plan or program where the insurer takes direction from 20 the plan sponsor or plan administrator. 21 c. “Authorized person” means a policy owner, 22 insured, annuity owner, annuitant, or account holder, 23 as applicable under a policy, annuity, or retained 24 asset account. 25 d. “Death master file” means the United States 26 social security administration’s death master file 27 or any other database or service that is at least as 28 comprehensive as the United States social security 29 administration’s death master file for determining that 30 a person has died. 31 e. “Death master file match” means a search of 32 the death master file that results in a match of an 33 authorized person’s name and social security number or 34 an authorized person’s name and date of birth. 35 f. “Insurer” means a life insurance company 36 regulated under chapter 508. 37 g. “Policy” means any policy or certificate of life 38 insurance issued in this state. “Policy” does not 39 include any of the following: 40 (1) A policy or certificate of life insurance which 41 provides a death benefit under an employee benefit 42 plan subject to the federal Employee Retirement Income 43 Security Act of 1974, Pub. L. No. 93-406, as codified 44 at 29 U.S.C. §1002 et seq. 45 (2) A policy or certificate of life insurance which 46 provides a death benefit under an employee benefit plan 47 subject to a federal employee benefit program. 48 (3) A policy or certificate of life insurance 49 which is used to fund a preneed plan for cemetery 50 -1- H8315.4286 (2) 85 tm/jp 1/ 4 #1.

merchandise, funeral merchandise, funeral services, or 1 a combination thereof. 2 (4) A policy or certificate of credit life or 3 accidental death insurance. 4 (5) A policy issued to a group master policyowner 5 for which the insurer does not provide recordkeeping 6 services. 7 h. “Recordkeeping services” means services provided 8 by an insurer who has entered into an agreement with a 9 group policy customer to be responsible for obtaining, 10 maintaining, and administering in the insurer’s own 11 recordkeeping systems at least all of the following 12 information about each individual insured under 13 the insured’s group insurance contract or a line of 14 coverage thereunder: 15 (1) Social security number or name and date of 16 birth. 17 (2) Beneficiary designation information. 18 (3) Coverage eligibility. 19 (4) Benefit amount. 20 (5) Premium payment status. 21 i. “Retained asset account” means an 22 interest-bearing account set up by an insurer in 23 the name of the beneficiary of a policy or annuity upon 24 the death of the insured. 25 3. Insurer duties. 26 a. For any in-force policy, annuity, or retained 27 asset account issued for delivery in this state for 28 which the insurer has not previously been notified of 29 a claim, an insurer shall perform a comparison of such 30 policy, annuity, or retained asset account against the 31 death master file, on at least a semiannual basis, to 32 identify potential death master file matches. 33 (1) An insurer may comply with the requirements of 34 this subsection by using the full death master file for 35 the initial comparison and thereafter using the death 36 master file update files for subsequent comparisons. 37 (2) Nothing in this section shall be interpreted to 38 limit the right of an insurer to request a valid death 39 certificate as part of any claims validation process. 40 b. If an insurer learns of the possible death of an 41 authorized person through a death master file match or 42 otherwise, the insurer shall, within ninety days, do 43 all of the following: 44 (1) Complete a good faith effort, which shall be 45 documented by the insurer, to confirm the death of the 46 authorized person against other available records and 47 information. 48 (2) Review the insurer’s records to determine 49 whether the deceased authorized person had purchased 50 -2- H8315.4286 (2) 85 tm/jp 2/ 4

any other products from the insurer. 1 (3) Determine whether benefits may be due in 2 accordance with the applicable policy, annuity, or 3 retained asset account. 4 (4) If the beneficiary or an authorized person 5 has not communicated with the insurer within the 6 ninety-day period, take reasonable steps, which shall 7 be documented by the insurer, to locate and contact any 8 beneficiary or other authorized person on the policy, 9 annuity, or retained asset account, including sending 10 the beneficiary or other authorized person information 11 regarding the insurer’s claims process and regarding 12 the need to provide an official death certificate, if 13 applicable under the policy, annuity, or retained asset 14 account. 15 c. Every insurer shall implement procedures to 16 account for all of the following: 17 (1) Common nicknames, initials used in lieu of a 18 first or middle name, use of a middle name, compound 19 first and middle names, and interchanged first and 20 middle names. 21 (2) Compound last names, maiden or married names, 22 and hyphens, blank spaces, or apostrophes in last 23 names. 24 (3) Transposition of the month and date portions of 25 the date of birth. 26 (4) Incomplete social security numbers. 27 d. An insurer may disclose minimum necessary 28 personal information about a beneficiary or authorized 29 person to an individual or entity whom the insurer 30 reasonably believes may be able to assist the insurer 31 in locating the beneficiary or authorized person 32 entitled to payment of the claims proceeds. 33 e. An insurer or its service provider shall not 34 charge a beneficiary or authorized person any fees 35 or costs associated with a death master file search 36 conducted pursuant to this section. 37 f. The benefits from a policy, annuity, or retained 38 asset account, plus any applicable accrued interest, 39 shall first be payable to designated beneficiaries 40 or authorized persons, and in the event that the 41 beneficiaries or authorized persons cannot be found, 42 shall be reported and remitted to the state as 43 unclaimed property pursuant to chapters 556 and 633. 44 4. Rules. The commissioner shall adopt rules to 45 administer the provisions of this section. 46 5. Orders. The commissioner may issue an order 47 doing any of the following: 48 a. Limiting the death master file comparisons 49 required under subsection 3, paragraph “a” , to an 50 -3- H8315.4286 (2) 85 tm/jp 3/ 4

insurer’s electronic searchable files or approving a 1 plan and timeline for conversion of an insurer’s files 2 to electronic searchable files. 3 b. Exempting an insurer from the death master file 4 comparisons required under subsection 3, paragraph “a” , 5 or permitting an insurer to perform such comparisons 6 less frequently than semiannually upon a demonstration 7 of financial hardship by the insurer. 8 c. Phasing in requirements for compliance with this 9 section according to a plan and timeline approved by 10 the commissioner. 11 6. Unfair trade practice. Failure to meet any 12 requirement of this section with such frequency as to 13 constitute a general business practice is an unfair 14 method of competition and an unfair or deceptive act 15 or practice in the business of insurance under this 16 chapter. 17 7. Insurer unclaimed property reporting. 18 a. If an insurer identifies a person as deceased 19 through a death master file match as described in 20 subsection 3, paragraph “a” , or other information 21 source, and validates such information through a 22 secondary information source, the insurer may report 23 and remit the proceeds of the policy, annuity, or 24 retained asset account due to the state prior to the 25 dates required for such reporting and remittance under 26 chapter 556, without further notice to or consent by 27 the state, after attempting to contact any beneficiary 28 under either of the following circumstances: 29 (1) The insurer is unable to locate a beneficiary 30 who is located in this state under the policy, annuity 31 contract, or retained asset account, after conducting 32 reasonable search efforts of up to one year after the 33 insurer’s validation of the death master file match. 34 (2) No beneficiary or person, as applicable for 35 unclaimed property reporting purposes under chapter 36 556, has a last known address in this state. 37 b. Once the insurer has reported upon and remitted 38 the proceeds of the policy, annuity, or retained 39 asset account to the state pursuant to chapter 556, 40 the insurer is relieved from any and all additional 41 liability to any beneficiary or authorized person 42 relating to the proceeds reported upon and remitted. 43 Sec. ___. EFFECTIVE DATE. This division of this 44 Act takes effect July 1, 2015. > 45 2. By renumbering as necessary. 46 ______________________________ SODERBERG of Plymouth -4- H8315.4286 (2) 85 tm/jp 4/ 4 #2.