{"data":{"id":"us-ky/krs-304.15-420","jurisdiction":"us-ky","citation":"KRS 304.15-420","heading":"Unclaimed Life Insurance Benefits Act.","body":"(1) The General Assembly declares the purpose of this section shall be to require\nrecognition of the escheat statute, as found in KRS 393A.130, and to require\ncomplete and proper disclosure, transparency, and accountability relating to any\nmethod of payment fo r annuity, retained asset, or life insurance death benefits\nregulated by the Department of Insurance.\n(2) As used in this section:\n(a) \"Contract\" means an annuity contract. The term \"contract\" shall not include an\nannuity used to fund an employment -based retirement plan or program where\nthe insurer is not committed by terms of the annuity contract to pay death\nbenefits to the beneficiaries of specific plan participants;\n(b) \"Death Master File\" means the United States Social Security Administration's\nDeath M aster File or any other database or service that is at least as\ncomprehensive as the United States Social Security Administration's Death\nMaster File for determining that a person has reportedly died;\n(c) \"Death Master File match\" means a search of the Dea th Master File that\nresults in a match of the Social Security number or the name and date of birth\nof an insured, annuitant, or retained asset account holder; and\n(d) \"Policy\" means any policy or certificate of life insurance that provides a death\nbenefit. The term \"policy\" shall not include:\n1. Any policy or certificate of life insurance that provides a death benefit\nunder:\na. An employee benefit plan, subject to the Employee Retirement\nIncome Security Act of 1974, as defined by 29 U.S.C. sec.\n1002(3);\nb. A governmental plan as defined by 29 U.S.C. sec. 1002(32);\nc. A church plan as defined by 29 U.S.C. sec. 1002(33); or\nd. Any federal employee benefit program;\n2. Any policy or certificate of life insurance that is used to fund a preneed\nfuneral contract or prearrangement as defined in KRS 304.12 -240(1)(a);\nor\n3. Any policies or certificates of insurance on the life of a debtor pursuant\nto or in connection with a specific loan or other credit transaction, or any\ngroup policy issued to a creditor to insure the lives of the creditor's\ndebtors and any certificates issued under such policies.\nAll other terms used in this section shall be interpreted in a manner consistent with\nthe definitions used in KRS Chapter 304.\n(3) (a) An insurer shall perform a comparison of its insureds' in -force life insurance\npolicies, contracts, and retained asset accounts against a Death Master File, on\nat least a semiannual basis, to identify potential matches of its insureds. An\ninsurer may comply with the requirements of this section by using the entire\nDeath Master File once, and for all  comparisons thereafter, an insurer may\nutilize the Death Master File updates.\n(b) For those potential matches identified as a result of a Death Master File\nmatch, the insurer shall within ninety (90) days of a Death Master File match:\n1. Complete a good-faith effort, which shall be documented by the insurer,\nto confirm the death of the insured, annuitant, or retained asset account\nholder against other available records and information; and\n2. Determine whether benefits are due in accordance with the applic able\npolicy or contract and, if benefits are due in accordance with the\napplicable policy or contract:\na. Use good-faith efforts, which shall be documented by the insurer,\nto locate the beneficiary or beneficiaries; and\nb. Provide the appropriate claims fo rms or instructions to each\nbeneficiary to make a claim, including the need to provide an\nofficial death certificate if applicable under the policy, contract, or\nretained asset account.\n(c) With respect to group life insurance, insurers are required only t o confirm the\npossible death of an insured when the insurers provide full recordkeeping\nservices to the group policy holder.\n(d) To the extent permitted by law, the insurer may disclose minimum necessary\npersonal information about the insured or beneficiar y to a person who the\ninsurer reasonably believes may be able to assist the insurer locate the\nbeneficiary or a person otherwise entitled to payment of the claims proceeds.\n(4) An insurer shall not charge insureds, account holders, or beneficiaries for any  fees\nor costs associated with a search or verification conducted pursuant to this section.\n(5) The benefits from a life insurance policy, contract, or a retained asset account, plus\nany applicable accrued interest, shall first be payable to the designated  beneficiaries\nor owners and, in the event those beneficiaries or owners cannot be found, shall\nescheat to the state as unclaimed property pursuant to KRS 393A.130.\n(6) An insurer shall notify the State Treasurer upon the expiration of the statutory time\nperiod for escheat that:\n(a) A life insurance policy or contract beneficiary or retained asset account holder\nhas not submitted a claim with the insurer; and\n(b) The insurer has complied with subsection (3) of this section and has been\nunable, after good -faith efforts documented by the insurer, to contact the\nretained asset account holder or any beneficiary.\n(7) Upon such notice, an insurer shall submit, on its next unclaimed property report due\nto the State Treasurer, the unclaimed life insurance benefits o r unclaimed retained\nasset accounts, plus any applicable accrued interest, to the State Treasurer.\n(8) Failure to meet any requirement of this section with such frequency as to constitute\na general business practice shall constitute a violation of Subtitle  12 of KRS\nChapter 304.\n(9) Nothing in this section shall be construed to create or imply a private cause of\naction for a violation of this section. An insurer that is making a good -faith effort to\ncomply with this section shall not be subject to any fees,  fines, penalties, or interest\nfor failure to perform a comparison of its in -force life insurance policies, contracts,\nand retained asset accounts prior to July 15, 2014.\n(10) The commissioner shall have exclusive authority and jurisdiction in his or her\nreasonable discretion based upon a demonstration of hardship to the insurer to issue\nan order allowing an insurer to phase in compliance with this section for a time\nperiod not to exceed one (1) year, according to a plan and timeline approved by the\ncommissioner.\n(11) This section shall be known as the Unclaimed Life Insurance Benefits Act.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48187","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"8add03f06be68558da9d142a7785f9373981d6cd0f5c44a0294b74135a78492e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-410","next":"us-ky/krs-304.15-700"},"notice":"GroundRules: Original legal text. Not legal advice."}