NRS: CHAPTER 688D - PAYMENT OF BENEFITS UPON DEATH OF INSURED

[Rev. 6/29/2024 4:59:41 PM--2023]

CHAPTER 688D - PAYMENT OF BENEFITS UPON DEATH OF INSURED

NRS 688D.010 Definitions.

NRS 688D.020 “Benefit contract” defined.

NRS 688D.030 “Death Master File” defined.

NRS 688D.040 “Insured” defined.

NRS 688D.050 “Policy of life insurance” defined.

NRS 688D.060 “Retained asset account” defined.

NRS 688D.070 Applicability.

NRS 688D.080 Insurer required to request information sufficient to ensure payment of benefits upon death of insured.

NRS 688D.090 Insurer required to compare policies of life insurance, annuities, benefit contracts and retained asset accounts against Death Master File at least semiannually; duties of insurer upon match; records; presumption of abandonment; disclosure of personal information; required confirmation of possible death if insurer maintains certain information under group life insurance policy; exception.

NRS 688D.100 Insurer prohibited from charging insured or beneficiary fees for search or verification.

NRS 688D.110 Notice to State Treasurer upon reversion by escheat; contents; transfer to State Treasurer of unclaimed benefit and interest; exception.

NRS 688D.120 Order of Commissioner: Authorization to search only electronically; approval of timeline to make files searchable electronically; exemption from requirements; approval of plan for compliance.

NRS 688D.130 Failure of insurer to comply with chapter may constitute unfair trade practice; exception.

NRS 688D.140 Regulations.

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NRS 688D.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 688D.020 to 688D.060, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2013, 2701)

NRS 688D.020 “Benefit contract” defined. “Benefit contract” has the meaning ascribed to it in NRS 695A.003.

(Added to NRS by 2013, 2701)

NRS 688D.030 “Death Master File” defined. “Death Master File” means the Death Master File from the Social Security Administration or any other database or service which is at least as comprehensive as the Death Master File from the Social Security Administration and which is acceptable to the Commissioner for determining that a person has reportedly died.

(Added to NRS by 2013, 2701)

NRS 688D.040 “Insured” defined. “Insured” means:

1. A person covered by a policy of life insurance;

2. A holder of a retained asset account;

3. An annuitant or other owner of an annuity, when the annuity provides for benefits to be paid or other money to be distributed upon the death of the annuitant or other owner of the annuity; or

4. A person covered by a benefit contract under which contractual death benefits are payable to a beneficiary pursuant to NRS 695A.180.

(Added to NRS by 2013, 2701)

NRS 688D.050 “Policy of life insurance” defined.

1. “Policy of life insurance” means any policy, contract or certificate of life insurance that provides a death benefit.

2. The term does not include:

(a) A policy or certificate of life insurance that is used to fund a preneed contract or sales agreement for funeral or burial services pursuant to chapter 689 of NRS;

(b) A policy or certificate of credit life insurance or credit accident and health insurance pursuant to chapter 690A of NRS; or

(Added to NRS by 2013, 2701)

NRS 688D.060 “Retained asset account” defined. “Retained asset account” means any account or other mechanism by which the settlement of any proceeds payable under a policy of life insurance is accomplished by the insurer or a person acting on behalf of the insurer by depositing the proceeds into an account with draft or check writing privileges, where the proceeds are retained by the insurer, pursuant to a supplementary contract not involving annuity benefits.

(Added to NRS by 2013, 2702)

NRS 688D.070 Applicability. The provisions of this chapter do not apply to any policy of life insurance, annuity or benefit contract that is used to fund or otherwise provide a death benefit under an employee benefit program which is subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.

(Added to NRS by 2013, 2702)

NRS 688D.080 Insurer required to request information sufficient to ensure payment of benefits upon death of insured. On or before the effective date of a policy of life insurance, annuity or benefit contract or on or before the date of the establishment of a retained asset account, and upon any change in an insured, an owner or a beneficiary, an insurer shall request information sufficient to ensure that all benefits are distributed to the appropriate beneficiary upon the death of the insured.

(Added to NRS by 2013, 2702)

1. Except as otherwise provided by order of the Commissioner pursuant to NRS 688D.120, each insurer shall, at least semiannually, for the purpose of paying death benefits to a beneficiary, perform a comparison against the Death Master File of the policies of life insurance, annuities, benefit contracts and retained asset accounts of its insureds which are in force. For the purposes of this subsection, a policy of life insurance, annuity, benefit contract or retained asset account is in force if, at the time of the death of the insured, the policy, annuity, contract or account has not lapsed, has not been cancelled or has not been terminated, and benefits are payable to a beneficiary or beneficiaries under the policy, annuity, contract or account.

2. Each insurer shall implement reasonable procedures to account for common variations in data that may otherwise preclude an exact match with the Death Master File.

3. Within 90 days after identifying a potential match resulting from a comparison of the Death Master File performed pursuant to subsection 1, the insurer shall:

(a) Make a reasonable effort to confirm the death of the insured against any other available records and information;

(b) Determine whether the deceased insured had purchased any other products of the insurer; and

(c) Determine whether death benefits are due in accordance with the applicable policy of life insurance, annuity or benefit contract and, if death benefits are due:

(1) Make a reasonable effort to locate each beneficiary; and

(2) Provide to each beneficiary who is located the appropriate claim forms and instructions for making a claim under the policy of life insurance, annuity or benefit contract.

4. If the insurer determines that death benefits are due in accordance with the applicable policy, annuity or benefit contract, the insurer shall keep a complete record of all efforts made to locate each beneficiary.

5. If an insurer is unable to locate a beneficiary pursuant to this section, but is otherwise able to reasonably determine the death of an insured and determine that a death benefit is due in accordance with the applicable policy of life insurance, annuity or benefit contract, the death benefit, other than a death benefit payable pursuant to subsection 3 of NRS 695A.210, shall be presumed abandoned in accordance with the provisions of NRS 120A.500.

6. To the extent permitted by law, the insurer may disclose minimum necessary personal information about the insured or beneficiary to a person who the insurer reasonably believes may be able to assist the insurer in locating the beneficiary or a person otherwise entitled to payment of the claims proceeds.

7. With respect to a policy of group life insurance delivered or issued for delivery pursuant to chapter 688B of NRS, an insurer is required to confirm the possible death of an insured pursuant to this chapter if the insurer maintains at least the following information for the insured under such a policy:

(a) Social security number or name and date of birth;

(b) Beneficiary designation information;

(d) Benefit amount; and

(e) Premium payment status.

(Added to NRS by 2013, 2702)

NRS 688D.100 Insurer prohibited from charging insured or beneficiary fees for search or verification. An insurer shall not charge or collect from an insured or a beneficiary any fees or costs associated with any search or verification conducted pursuant to this chapter.

(Added to NRS by 2013, 2703)

NRS 688D.110 Notice to State Treasurer upon reversion by escheat; contents; transfer to State Treasurer of unclaimed benefit and interest; exception.

1. An insurer shall notify the State Treasurer upon the reversion by escheat of a benefit under a policy of life insurance or an annuity. The notice must state that:

(a) The beneficiary under the policy or annuity has failed to submit a claim with the insurer; and

(b) The insurer has complied with NRS 688D.090 and, after a good faith effort which has been documented pursuant to NRS 688D.090, has been unable to contact any beneficiary of the policy or annuity.

2. As soon as practicable after providing notice pursuant to subsection 1, an insurer shall transfer to the State Treasurer the amount of the unclaimed benefit owed under the policy of life insurance or annuity, including any accrued interest thereon.

3. The provisions of this section do not apply to a death benefit which vests under a benefit contract and which is payable pursuant to subsection 3 of NRS 695A.210.

(Added to NRS by 2013, 2703)

1. Authorizing an insurer to limit its comparison against the Death Master File pursuant to NRS 688D.090 to its files that are searchable electronically.

2. Approving a timeline by which an insurer must convert its files into a form that is searchable electronically.

3. Exempting an insurer from any requirement of NRS 688D.090, including authorizing an insurer to perform a comparison against the Death Master File less frequently than semiannually, upon a demonstration of financial hardship by the insurer.

4. Approving the plan of an insurer to comply with the requirements of this chapter during the period and in the manner set forth in the plan.

(Added to NRS by 2013, 2703)

NRS 688D.130 Failure of insurer to comply with chapter may constitute unfair trade practice; exception. Except as otherwise provided in NRS 688D.120, the failure of an insurer to comply with any provision of this chapter may constitute an unfair trade practice for the purposes of chapter 686A of NRS.

(Added to NRS by 2013, 2704)

NRS 688D.140 Regulations. The Commissioner may adopt regulations to carry out the provisions of this chapter.

(Added to NRS by 2013, 2704)