23-81-904. Insurer conduct.

23-81-904. Insurer conduct. (a) An insurer shall make a good faith effort to determine the death of an insured upon receipt of knowledge of death. (b)(1) An insurer shall compare an in-force policy, contract, and retained asset account against a death master file to identify a potential match to an insured covered under the policy, contract, and retained asset account by using the full version of the death master file. (2) An insurer shall perform the comparison under subdivision (b)(1) of this section semiannually by using the death master file update. (c)(1) For a potential match that is identified as a result of a death master file match, the insurer shall within ninety (90) days of a death master file match: (A) Make and document a good faith effort to confirm the death of the insured or retained asset account holder against other available records and information; (B) Determine if death benefits are due under an applicable policy or contract; and (C) If death benefits are due under the applicable policy or contract: (i) Make a good faith effort to document and locate any beneficiary or beneficiaries; and (ii) Provide the beneficiary or beneficiaries the necessary claim form or instructions to make a claim under the policy or contract, including submitting a death certificate issued by the state or any political subdivision of the state if required under the policy or contract. (2) If an insurer is unable to confirm the death of an individual under subdivision (c)(1) of this section, the policy, annuity, or retained asset account may be considered by an insurer to be in force according to the terms of the policy, annuity, or retained asset account. (3) An insurer is required to confirm a possible death of an insured under a group life insurance if the insurer maintains for an individual covered under a policy or certificate an insured's: (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. (4) To the extent permitted by law, an insurer may disclose the necessary personal information about an insured or beneficiary to a person who the insurer reasonably believes may be able to assist the insurer in locating a beneficiary or a person entitled to payment of the claims proceeds. (d) An insurer shall not charge a beneficiary or the beneficiary's authorized representative a fee or charge any costs associated with a death master file search or verification of a death master file match performed under this section. (e)(1) A benefit or any accrued contractual interest under a policy, contract, or a retained asset account is payable to the designated beneficiary or owner. (2) If a beneficiary or owner cannot be found, the benefit or any accrued contractual interest shall escheat to the state as unclaimed property under the Unclaimed Property Act, § 18-28-201 et seq. (3) Interest payable under § 23-81-118 shall not be payable as unclaimed property under the Unclaimed Property Act, § 18-28-201 et seq. (f) An insurer shall notify the Auditor of State upon the expiration of the statutory time period for escheat that: (1) A beneficiary under a life insurance policy, contract, or retained asset account holder has not submitted a claim with the insurer; and (2) The insurer has complied with subsection (b) of this section and has documented its good faith effort to locate and notify a beneficiary or retained asset account holder but has been unsuccessful. (g) Upon delivery of a notice under subsection (f) of this section, an insurer shall submit immediately any unclaimed benefits under a policy, contract, or retained asset account, plus any applicable interest, to the Auditor of State.