HB192 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Insurance, life, annuity contracts, retained asset accounts, death master file, search further provided for, Secs. 27-15-51, 27-15-52, 27-15-53 am'd.; Act 2012-424, 2012 Reg. Sess., am'd.

Summary

HB192 requires Alabama life insurers to compare in-force policies, annuity contracts, and retained asset accounts against the Death Master File (DMF) for matches, focusing on policies issued in or after 2016, with results due by 2019 and unclaimed proceeds escheated to the state if not claimed.

What This Bill Does

It narrows the DMF search to policies issued or delivered in Alabama on or after January 1, 2016 and requires insurers with in-force policies to compare them to the DMF, completing matches by January 1, 2019. For each DMF match, insurers must within 90 days verify death, determine whether benefits may be due, and try to locate the rightful beneficiaries or account holder, providing claim forms and required documentation. If no rightful claimant is found after these efforts, benefits may escheat to the state as unclaimed property, with the insurer notifying the State Treasurer and transferring the unclaimed funds after the escheat period.

Who It Affects

• Insurers licensed in Alabama that issue or hold life insurance policies, annuity contracts, and retained asset accounts issued or delivered in Alabama (must implement DMF comparisons and manage claims).
• Policyholders, contract owners, annuitants, beneficiaries, and other persons entitled to payment (may be notified, asked to provide documentation, and have benefits paid if located; otherwise funds may go to the state).

Key Provisions

• DMF search applies only to life insurance policies, annuity contracts, and retained asset accounts issued and delivered in Alabama and issued or entered into on or after January 1, 2016.
• Insurers with in-force such policies/contracts/accounts must compare them against the DMF to identify potential matches, with completion of matches by January 1, 2019, and maintain a program to compare at least every three years.
• For each DMF match, insurers must within 90 days: (a) conduct commercially reasonable efforts to confirm death, (b) determine whether benefits may be due, (c) use reasonable efforts to locate beneficiaries or other entitled persons, and (d) provide claim forms and required documentation (e.g., death certificate).
• Group life insurance has a streamlined requirement, confirming possible death only if the insurer maintains complete insured information and related data for the group policyholder.
• Insurers may disclose minimum necessary personal information to assist locating beneficiaries, as allowed by law.
• Insurers may not charge insureds or beneficiaries for search or verification costs related to the DMF process.
• If no claimant is found after efforts, benefits payable shall be paid to the designated beneficiaries or owners; if not found, they escheat to the state as unclaimed property under applicable law.
• Upon expiration of the escheat period after a positive DMF match and failure to claim, insurers must notify the State Treasurer and transfer unclaimed benefits to the State Treasurer per applicable statutes.
• Effective date: the act becomes effective on the first day of the third month after it is enacted into law.

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