New Hampshire Revised Statutes 408:9 – Retained Asset Accounts
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I. “Retained asset account” means any mechanism whereby the settlement of death benefits payable under a life insurance policy or annuity contract is accomplished pursuant to a disclosure document with the beneficiary, or the beneficiary’s legal representative, by the insurer, or an entity acting on behalf of the insurer, depositing the proceeds into an account with check or draft writing privileges pursuant to a disclosure document.
II. An insurer may not transfer funds to a retained asset account unless the beneficiary or the beneficiary’s legal representative has elected to receive funds through a retained asset account after receiving written information describing the settlement options available under the policy or contract and any other option available to the beneficiary for the receipt of proceeds.
III. The insurer shall provide written disclosures to the beneficiary, or the beneficiary’s legal representative, of the death benefit that clearly provides the rights of the beneficiary and the obligations of the insurer before the retained asset account is selected. Such disclosures shall include the following:
(a) Payment of the full benefit amount is accomplished by delivery of the draft book or check book;
(b) One draft or check may be written to access the entire amount, including interest, of the retained asset account at any time;
(c) Whether other available settlement options are preserved until the entire balance is withdrawn or the balance drops below the insurer’s minimum balance requirements;
(d) A statement identifying the account as either a checking account or a draft account and an explanation of how the account works;
(e) Information about the account services provided and contact information where the beneficiary may request and obtain more details about such services;
(f) A description of services provided at no charge and which services involve a fee, if applicable;
(g) The frequency of statements showing the current account balance, the interest credited, drafts or checks written, and any other account activity;
(h) The minimum interest rate to be credited to the account and how the actual interest rate will be determined;
(i) The interest earned on the account may be taxable;
(j) Retained asset account funds held by insurance companies are not insured by the Federal Deposit Insurance Corporation but are guaranteed by the state guaranty association. The beneficiary should be advised to contact the National Organization of Life and Health Insurance Guaranty Associations via the association’s website to learn more about the coverage limitations to the account under a state guaranty association;
(k) A description of the insurer’s policy regarding retained asset accounts that become inactive;
(l) The contact information, including Internet website address, a telephone number, and address, where the beneficiary may obtain additional information and answers to any questions;
(m) The recommendation to consult a tax, investment, or other financial advisor regarding tax liability and investment options; and
(n) A beneficiary for the account may be designated if no designation has previously been made.
IV. The insurer shall deliver periodic statements to the beneficiary at least quarterly detailing the account balance and any transactions.
II. An insurer may not transfer funds to a retained asset account unless the beneficiary or the beneficiary’s legal representative has elected to receive funds through a retained asset account after receiving written information describing the settlement options available under the policy or contract and any other option available to the beneficiary for the receipt of proceeds.
Terms Used In New Hampshire Revised Statutes 408:9
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- 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
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- 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
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
III. The insurer shall provide written disclosures to the beneficiary, or the beneficiary’s legal representative, of the death benefit that clearly provides the rights of the beneficiary and the obligations of the insurer before the retained asset account is selected. Such disclosures shall include the following:
(a) Payment of the full benefit amount is accomplished by delivery of the draft book or check book;
(b) One draft or check may be written to access the entire amount, including interest, of the retained asset account at any time;
(c) Whether other available settlement options are preserved until the entire balance is withdrawn or the balance drops below the insurer’s minimum balance requirements;
(d) A statement identifying the account as either a checking account or a draft account and an explanation of how the account works;
(e) Information about the account services provided and contact information where the beneficiary may request and obtain more details about such services;
(f) A description of services provided at no charge and which services involve a fee, if applicable;
(g) The frequency of statements showing the current account balance, the interest credited, drafts or checks written, and any other account activity;
(h) The minimum interest rate to be credited to the account and how the actual interest rate will be determined;
(i) The interest earned on the account may be taxable;
(j) Retained asset account funds held by insurance companies are not insured by the Federal Deposit Insurance Corporation but are guaranteed by the state guaranty association. The beneficiary should be advised to contact the National Organization of Life and Health Insurance Guaranty Associations via the association’s website to learn more about the coverage limitations to the account under a state guaranty association;
(k) A description of the insurer’s policy regarding retained asset accounts that become inactive;
(l) The contact information, including Internet website address, a telephone number, and address, where the beneficiary may obtain additional information and answers to any questions;
(m) The recommendation to consult a tax, investment, or other financial advisor regarding tax liability and investment options; and
(n) A beneficiary for the account may be designated if no designation has previously been made.
IV. The insurer shall deliver periodic statements to the beneficiary at least quarterly detailing the account balance and any transactions.