We recently published a brief post concerning West Virginia legislation relating to the obligation (or not) of life insurers to review the Social Security Death Master File (DMF) to determine when a life insurance policy becomes payable. After the West Virginia Supreme Court held that life insurers had a duty to periodically ascertain when life insurance policies become payable, a few West Virginia legislators introduced a bill that would largely undo that decision - by specifically providing that " the obligation to pay does not arise until after a claim is made." Instead of that legislation, however, the West Virginia legislature recently passed a bill that would make DMF searches a statutory requirement for insurers. The Governor signed that bill on April 1, effective June 30, 2016.
Showing posts from March, 2016
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Last summer, the West Virginia Supreme Court of Appeals issued an opinion in Purdue v. Nationwide Life Insurance Company , a case presenting the issue of whether a life insurer is required to undertake periodic investigations to determine whether any of its policyholders are deceased (and, thus, that a death benefit is payable). While the Court did not rule that insurers had a specific obligation to review the Social Security Death Master File (DMF) or similar databases, it nonetheless held that the dormancy period for a life insurance policy begins at the date of death and placed the burden on insurers to figure out how to ascertain that information. Of course, an insurer could search the DMF, the Court explained, but they could also "contact its insureds directly" (e.g., call them every year), farm the task out to agents, or do whatever else the found "the most economical" so long as they obtained the required information. While the West Virginia Su
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The Delaware Department of Finance has posted proposed regulations for public comment to govern the state's unclaimed property audits and VDA proposals. The proposed regulations are intended to implement the Delaware legislature's direction "to complete the development of a detailed manual containing procedural guidelines for the conduct of Delaware unclaimed property examinations" as per January 2015's Senate Bill 11 . Among the highlights of the proposed regulations relating to VDAs administered by the Department of Finance* is the establishment of a "rolling look-back date of 19 report years" for all VDAs entered into on or after January 1, 2017. The proposed audit regulations include details regarding the appropriate sampling and estimation methodologies, rules for the auditor's conduct of the audit, procedural steps, as well as a sample (though very summary) non-disclosure agreement acceptable to the state. The proposed regulations also