HB 487 (BR 1585) - J. Greer
AN ACT relating to unclaimed life insurance benefits.
Amend KRS 304.15-420 to require an insurer to perform a comparison of its insureds' in-force life insurance policies, contracts, and retained asset accounts against a Death Master File on a semiannual, rather than a quarterly, basis; allow an insurer to perform one comparison against the entire Death Master File and to utilize Death Master File updates thereafter; authorize an insurer, for escheat purposes, to submit its next unclaimed property report to the State Treasurer unclaimed life insurance benefits or unclaimed retained asset accounts, plus accrued interest, rather than submitting a report immediately upon the expiration of the statutory time period for escheat; provide that failure to meet any requirement of this section with such frequency as to constitute a general business practice, rather than failure to meet any requirement of this section, shall constitute a trade practice or fraud; provide that nothing in this section shall create a private cause of action; provide that if the insurer is making a good-faith effort to comply, the insurer shall not be subject to fees, fines, penalties, or interest; provide that the commissioner of the Department of Insurance shall have exclusive authority and jurisdiction based upon a demonstration of hardship to the insurer to allow an insurer to phase in compliance for a time period not to exceed one year according to a plan and timeline approved by the commissioner.
Feb 27-introduced in House
Mar 4-to Banking & Insurance (H)
Mar 6-posted in committee