Nrs: Chapter 688D - Payment Of Benefits Upon Death Of Insured

Link to law: https://www.leg.state.nv.us/NRS/NRS-688D.html
Published: 2015

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[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)