Section 27-4.9-1. – Short title.

§ 27-4.9-1. Short title. This chapter shall be known and may be cited as the “Beneficiaries’ Bill of Rights Act of 2011.” History of Section.P.L. 2011, ch. 339, § 1; P.L. 2011, ch. 370, § 1.

Section 27-4.9-2. – Purpose.

§ 27-4.9-2. Purpose. The purpose of this chapter is to require complete and proper disclosure, transparency, and accountability relating to any method of payment for life insurance death benefits and require that beneficiaries are fully informed in bold type and in layman’s language of their options. History of Section.P.L. 2011, ch. 339, § 1; P.L. […]

Section 27-4.9-3. – Definitions.

§ 27-4.9-3. Definitions. As used in this section: (1) “Policy” means any policy or certificate of life insurance that provides a death benefit. (2) “Retained asset account” means any mechanism whereby the settlement of proceeds payable under a life insurance policy, including, but not limited to, the payment of cash surrender value, is accomplished by […]

Section 27-4.9-4. – General requirements.

§ 27-4.9-4. General requirements. (a) An insurer may not use a retained asset account as the mode of settlement unless the insurer discloses such option to the beneficiary or the beneficiary’s legal representative prior to the transfer of the death benefit to a retained asset account. (b) A beneficiary shall be informed of his or […]

Section 27-4.9-5. – Disclosure requirements.

§ 27-4.9-5. Disclosure requirements. (a) A complete listing and clear explanation of all of the life insurance proceeds payment options available to the beneficiary in written or electronic format shall accompany the tender of other than a lump sum payment of a life insurance death benefit. (b) The use of a retained asset account shall […]

Section 27-4.9-6. – Insurer reporting.

§ 27-4.9-6. Insurer reporting. (a) Insurers shall, on an annual basis, report the following information to the insurance commissioner within the department of business regulation: (1) The number and dollar balance of retained asset accounts in force at the beginning of the year; (2) The number and dollar amount of retained asset accounts issued/added during […]

Section 27-4.9-7. – Effective date.

§ 27-4.9-7. Effective date. This chapter shall apply to claims for a death benefit under any policy or certificate of life insurance subject to the insurance laws of the state where the beneficiary resides submitted on or after September 1, 2011. History of Section.P.L. 2011, ch. 339, § 1; P.L. 2011, ch. 370, § 1.