[Rev. 2/11/2015 11:51:49
AM--2014R2]
CHAPTER 688D - PAYMENT OF BENEFITS UPON
DEATH OF INSURED
NRS 688D.010 Definitions.
NRS 688D.020 “Benefit
contract” defined.
NRS 688D.030 “Death
Master File” defined.
NRS 688D.040 “Insured”
defined.
NRS 688D.050 “Policy
of life insurance” defined.
NRS 688D.060 “Retained
asset account” defined.
NRS 688D.070 Applicability.
NRS 688D.080 Insurer
to request information sufficient to ensure payment of benefits upon death of
insured.
NRS 688D.090 Insurer
required to compare policies of life insurance, annuities, benefit contracts
and retained asset accounts against Death Master File at least semiannually;
requirements of insurer upon match; presumption of abandonment; records.
NRS 688D.100 Insurer
prohibited from charging insured or beneficiary fees for search or
verification.
NRS 688D.110 Notice
to State Treasurer upon reversion by escheat; contents; transfer to State
Treasurer of unclaimed benefit and interest.
NRS 688D.120 Order
of Commissioner: Authorization to search only electronically; approval of
timeline to make files searchable electronically; exemption; approval of plan
for compliance.
NRS 688D.130 Failure
to comply constitutes unfair trade practice.
NRS 688D.140 Regulations.
_________
NRS 688D.010 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 688D.020 to 688D.060, inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2013, 2701)
NRS 688D.020 “Benefit contract” defined. “Benefit
contract” has the meaning ascribed to it in NRS 695A.003.
(Added to NRS by 2013, 2701)
NRS 688D.030 “Death Master File” defined. “Death
Master File” means the Death Master File from the Social Security
Administration or any other database or service which is at least as
comprehensive as the Death Master File from the Social Security Administration
and which is acceptable to the Commissioner for determining that a person has
reportedly died.
(Added to NRS by 2013, 2701)
NRS 688D.040 “Insured” defined. “Insured”
means:
1. A person covered by a policy of life
insurance;
2. A holder of a retained asset account;
3. An annuitant or other owner of an
annuity, when the annuity provides for benefits to be paid or other money to be
distributed upon the death of the annuitant or other owner of the annuity; or
4. A person covered by a benefit contract
under which contractual death benefits are payable to a beneficiary pursuant to
NRS 695A.180.
(Added to NRS by 2013, 2701)
NRS 688D.050 “Policy of life insurance” defined.
1. “Policy of life insurance” means any
policy, contract or certificate of life insurance that provides a death
benefit.
2. The term does not include:
(a) A policy or certificate of life insurance
that is used to fund a preneed contract or sales agreement for funeral or
burial services pursuant to chapter 689 of
NRS;
(b) A policy or certificate of credit life
insurance or credit accident and health insurance pursuant to chapter 690A of NRS; or
(c) A policy or certificate of accidental death
insurance.
(Added to NRS by 2013, 2701)
NRS 688D.060 “Retained asset account” defined. “Retained
asset account” means any account or other mechanism by which the settlement of
any proceeds payable under a policy of life insurance is accomplished by the
insurer or a person acting on behalf of the insurer by depositing the proceeds
into an account with draft or check writing privileges, where the proceeds are
retained by the insurer, pursuant to a supplementary contract not involving
annuity benefits.
(Added to NRS by 2013, 2702)
NRS 688D.070 Applicability. The
provisions of this chapter do not apply to any policy of life insurance,
annuity or benefit contract that is used to fund or otherwise provide a death
benefit under an employee benefit program which is subject to the Employee
Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.
(Added to NRS by 2013, 2702)
NRS 688D.080 Insurer to request information sufficient to ensure payment of
benefits upon death of insured. On
or before the effective date of a policy of life insurance, annuity or benefit
contract or on or before the date of the establishment of a retained asset
account, and upon any change in an insured, an owner or a beneficiary, an
insurer shall request information sufficient to ensure that all benefits are
distributed to the appropriate beneficiary upon the death of the insured.
(Added to NRS by 2013, 2702)
NRS 688D.090 Insurer required to compare policies of life insurance,
annuities, benefit contracts and retained asset accounts against Death Master
File at least semiannually; requirements of insurer upon match; presumption of
abandonment; records.
1. Except as otherwise provided by order
of the Commissioner pursuant to NRS 688D.120, each
insurer shall, at least semiannually, for the purpose of paying death benefits
to a beneficiary, perform a comparison against the Death Master File of the
policies of life insurance, annuities, benefit contracts and retained asset
accounts of its insureds which are in force. For the purposes of this
subsection, a policy of life insurance, annuity, benefit contract or retained
asset account is in force if, at the time of the death of the insured, the
policy, annuity, contract or account has not lapsed, has not been cancelled or
has not been terminated, and benefits are payable to a beneficiary or beneficiaries
under the policy, annuity, contract or account.
2. Each insurer shall implement reasonable
procedures to account for common variations in data that may otherwise preclude
an exact match with the Death Master File.
3. Within 90 days after identifying a
potential match resulting from a comparison of the Death Master File performed
pursuant to subsection 1, the insurer shall:
(a) Make a reasonable effort to confirm the death
of the insured against any other available records and information;
(b) Determine whether the deceased insured had
purchased any other products of the insurer; and
(c) Determine whether death benefits are due in
accordance with the applicable policy of life insurance, annuity or benefit
contract and, if death benefits are due:
(1) Make a reasonable effort to locate
each beneficiary; and
(2) Provide to each beneficiary who is
located the appropriate claim forms and instructions for making a claim under
the policy of life insurance, annuity or benefit contract.
4. If the insurer determines that death
benefits are due in accordance with the applicable policy, annuity or benefit
contract, the insurer shall keep a complete record of all efforts made to
locate each beneficiary.
5. If an insurer is unable to locate a
beneficiary pursuant to this section, but is otherwise able to reasonably
determine the death of an insured and determine that a death benefit is due in
accordance with the applicable policy of life insurance, annuity or benefit
contract, the death benefit, other than a death benefit payable pursuant to
subsection 3 of NRS 695A.210, shall
be presumed abandoned in accordance with the provisions of NRS 120A.500.
6. To the extent permitted by law, the
insurer may disclose minimum necessary personal information about the insured
or beneficiary to a person who the insurer reasonably believes may be able to
assist the insurer in locating the beneficiary or a person otherwise entitled
to payment of the claims proceeds.
7. With respect to a policy of group life
insurance delivered or issued for delivery pursuant to chapter 688B of NRS, an insurer is required to
confirm the possible death of an insured pursuant to this chapter if the
insurer maintains at least the following information for the insured under such
a policy:
(a) Social security number or name and date of
birth;
(b) Beneficiary designation information;
(c) Coverage eligibility;
(d) Benefit amount; and
(e) Premium payment status.
(Added to NRS by 2013, 2702)
NRS 688D.100 Insurer prohibited from charging insured or beneficiary fees for
search or verification. An insurer
shall not charge or collect from an insured or a beneficiary any fees or costs
associated with any search or verification conducted pursuant to this chapter.
(Added to NRS by 2013, 2703)
NRS 688D.110 Notice to State Treasurer upon reversion by escheat; contents;
transfer to State Treasurer of unclaimed benefit and interest.
1. An insurer
shall notify the State Treasurer upon the reversion by escheat of a benefit
under a policy of life insurance or an annuity. The notice must state that:
(a) The beneficiary under the policy or annuity
has failed to submit a claim with the insurer; and
(b) The insurer has complied with NRS 688D.090 and, after a good faith effort which has
been documented pursuant to NRS 688D.090, has been
unable to contact any beneficiary of the policy or annuity.
2. As soon as practicable after providing
notice pursuant to subsection 1, an insurer shall transfer to the State Treasurer
the amount of the unclaimed benefit owed under the policy of life insurance or
annuity, including any accrued interest thereon.
3. The provisions of this section do not
apply to a death benefit which vests under a benefit contract and which is
payable pursuant to subsection 3 of NRS
695A.210.
(Added to NRS by 2013, 2703)
NRS 688D.120 Order of Commissioner: Authorization to search only
electronically; approval of timeline to make files searchable electronically;
exemption; approval of plan for compliance. The
Commissioner may, after notice and a hearing, issue an order:
1. Authorizing an insurer to limit its
comparison against the Death Master File pursuant to NRS
688D.090 to its files that are searchable electronically.
2. Approving a timeline by which an
insurer must convert its files into a form that is searchable electronically.
3. Exempting an insurer from any
requirement of NRS 688D.090, including authorizing
an insurer to perform a comparison against the Death Master File less
frequently than semiannually, upon a demonstration of financial hardship by the
insurer.
4. Approving the plan of an insurer to
comply with the requirements of this chapter during the period and in the
manner set forth in the plan.
(Added to NRS by 2013, 2703)
NRS 688D.130 Failure to comply constitutes unfair trade practice. Except as otherwise provided in NRS 688D.120, the failure of an insurer to comply
with any provision of this chapter may constitute an unfair trade practice for
the purposes of chapter 686A of NRS.
(Added to NRS by 2013, 2704)
NRS 688D.140 Regulations. The
Commissioner may adopt regulations to carry out the provisions of this chapter.
(Added to NRS by 2013, 2704)