(a)  A complete listing and clear explanation of all of the life insurance proceeds payment options available to the beneficiary in written or electronic format shall accompany the tender of other than a lump sum payment of a life insurance death benefit.

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Terms Used In Rhode Island General Laws 27-4.9-5

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC

(b)  The use of a retained asset account shall require in the description and explanation pursuant to subsection (a) herein the following:

(1)  The recommendation to consult a tax, investment, or other financial advisor regarding tax liability and investment options;

(2)  The initial interest rate, when and how interest rates may change, and any dividends and other gains that may be paid or distributed to the account holder;

(3)  The custodian of the funds or assets of the account;

(4)  The coverage guaranteed by the Federal Deposit Insurance Corporation (FDIC), if any, and the amount of such coverage;

(5)  The limitations, if any, on the numbers and amounts of withdrawals of funds from the account, including any minimum or maximum benefit payment amounts;

(6)  The delays, if any, that the account holder may encounter in completing authorized transactions and the anticipated duration of such delays;

(7)  The services provided for a fee, including a list of the fees or the method of their calculation;

(8)  The nature and frequency of statements of account;

(9)  The payment of some or all of the proceeds of the death benefit may be by the delivery of checks, drafts, or other instruments to access the available funds;

(10)  The entire proceeds are available to the account holder by the use of one such check, draft, or other instrument;

(11)  The insurer or a related party may derive income, in addition to any fees charged on the account, from the total gains received on the investment of the balance of funds in the account;

(12)  The telephone number, address, and other contact information, including website address, to obtain additional information regarding the account; and

(13)  The following statement: “For further information, please contact the department of business regulation.”

(c)  The writings produced to satisfy the requirements of this section shall be in easy-to-understand language and bold or at least twelve (12) point type.

History of Section.
P.L. 2011, ch. 339, § 1; P.L. 2011, ch. 370, § 1.