HB126 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Greg Wren
Republican
Session: Regular Session 2012
Title: Insurance, Unclaimed Life Insurance Benefits Act, death master file, notification to State Treasurer, submit unclaimed benefits or unclaimed retained asset account plus interest to State Treasurer
Summary: Alabama life insurers must search for unclaimed life insurance benefits using the death master file and, if unclaimed, turn them over to the State Treasurer under escheat laws.
What This Bill Does
Insurers must compare in-force policies, annuity contracts, and retained asset accounts to the Death Master File at least semi-annually. When a match is found, they must verify death within 90 days, determine if benefits may be due, try to locate the beneficiary, and provide claim forms; group life has similar requirements if records are kept. No fees may be charged for these searches. If no claimant is found after reasonable efforts, benefits escheat to the state and the insurer must notify the State Treasurer and remit the funds plus accrued interest under Alabama escheat laws.

Who It Affects
Beneficiaries, policy owners, and retained asset account holders: their potential claims will be pursued through the DMF matching process, with benefits paid if located or escheated to the state if not found.
Insurers and the State Treasurer: insurers must implement and maintain DMF-matching processes and notify/remit unclaimed benefits to the State Treasurer; the Treasurer receives funds that are not claimed.

Key Provisions
Establishes the Unclaimed Life Insurance Benefits Act and aligns with Alabama escheat/unclaimed property statutes for life insurance death benefits.
Requires insurers to compare in-force policies, annuities, and retained asset accounts to the Death Master File at least semi-annually; initial compliance within 6 months and full implementation within 3 years; ongoing checks at least every 3 years thereafter.
For each possible DMF match, insurers must within 90 days verify death, determine eligibility for benefits, locate beneficiaries, and provide claim forms and required evidence.
Group life insurance requirements apply only when the insurer maintains complete recordkeeping information for the group.
Insurers may disclose minimum necessary personal information to help locate beneficiaries; no fees may be charged for searches or verifications.
If benefits cannot be paid after reasonable effort, they escheat to the state as unclaimed property; terms of contracts regarding contestability or proof of loss are not changed.
Insurers must notify the State Treasurer after the escheat period expires if no claim has been filed and they cannot contact the rightful parties arising from a DMF match.
Insurers must remit unclaimed life insurance or annuity benefits or unclaimed retained asset accounts plus accrued interest to the State Treasurer under state law.
Effective date: January 1, 2014.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance