North Dakota Code 26.1-55-02 – Insurer conduct
1. Before November 1, 2014, an insurer shall perform a comparison of the insurer’s insureds’ in-force life insurance policies and retained asset accounts against a death master file in order to identify potential matches of the insurer’s insureds. Semiannually, an insurer shall perform a comparison of the insurer’s insureds’ in-force life insurance policies and retained asset accounts against the revised death master file in order to identify the potential matches of the insurer’s insureds.
Terms Used In North Dakota Code 26.1-55-02
- 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.
- Escheat: Reversion of real or personal property to the state when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time. Source: OCC
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
- Individual: means a human being. See North Dakota Code 1-01-49
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- Property: includes property, real and personal. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
2. For each potential match identified as a result of a death master file or revised death master file match, within twelve months of the potential match, the insurer shall:
a. Complete a good-faith effort, which the insurer shall document, to confirm the death of the insured or retained asset accountholder against other available records and information; b. Review the insurer’s records to determine whether the individual who has died purchased any other products with the insurer; and
c. Determine whether benefits are due in accordance with the applicable policy or contract, and if benefits are due in accordance with the applicable policy or contract the insurer shall:
(1) Use good-faith efforts, which the insurer shall document, to locate the beneficiary or beneficiaries; and
(2) Provide the appropriate claims forms or instructions to the beneficiary or beneficiaries to make a claim, including the need to provide an official death certificate, if applicable under the policy or contract.
3. With respect to group life insurance, for each potential match identified as a result of a death master file or revised death master file match, the insurer shall confirm the possible death of an insured if the insurer maintains at least the following information of those covered under a policy or certificate:
a. The social security number or the name and date of birth; b. Beneficiary designation information; c. Coverage eligibility; d. Benefit amount; and
e. Premium payment status.
4. Every insurer shall implement procedures to account for:
a. Nicknames, initials used in lieu of a first or middle name, use of a middle name, compound first and middle names, and interchanged first and middle names; b. Compound last names, maiden or married names, and hyphens, blank spaces, and apostrophes in last names; c. Incomplete date of birth data and transposition of the month and date portions of a date of birth; and
d. Incomplete social security numbers.
5. To the extent permitted by law, for each potential match identified as a result of a death master file or revised death master file match, the insurer may disclose minimum necessary personal information about the insured or beneficiary to:
a. A person the insurer reasonably believes may be able to assist the insurer locate the beneficiary; or
b. A person otherwise entitled to payment of the claims proceeds.
6. An insurer or an insurer’s service provider may not charge an insured, accountholder, or beneficiary for any fees or costs associated with a comparison, search, or verification conducted pursuant to this section.
7. The benefits from a life insurance policy or a retained asset account, plus any applicable accrued interest must be first payable to the designated beneficiaries or owners and if the beneficiaries or owners cannot be found, escheat to the state as unclaimed property as provided under this chapter.
8. Within twelve months following a potential match identified as a result of a death master file or revised death master file match, an insurer shall:
a. Notify the state abandoned property office that a life insurance policy beneficiary or retained asset accountholder has not submitted and completed a claim with the insurer and that the insurer has complied with subsections 2 and 3 and has been unable, after good-faith efforts documented by the insurer, to contact the retained asset accountholder, beneficiary, or beneficiaries and unable to complete the necessary payment; and
b. Submit any unclaimed life insurance benefits or unclaimed retained asset accounts, plus any applicable accrued interest, to the state abandoned property office under chapter 47-30.2.
9. Except as otherwise provided under this chapter, chapter 47-30.2 applies to the escheatment of unclaimed life insurance benefits or unclaimed retained asset accounts.