UCP Legislation
Presented By:
John R. Camillo
Unclaimed Property Basics
 Life insurance or annuity proceeds that are unclaimed after
dormancy trigger and dormancy period are escheated to the state
 “Dormancy Period” is the time that property remains dormant before
escheated
 “Dormancy trigger” is when property becomes inactive; defined by
statute
 Dormancy Triggers Utilized for Reporting Over Past 70 + Years
 Policy claim – “Due Proof of Death”
 Maturity
 If no claim, limiting age
 If no claim, “knowledge of death” (19 states)
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UCP And The Life Insurance Industry
 State Treasurers and Third-Party Auditors
“Asymmetric” Use of Social Security Death Master
File
Perceived by Media and some regulators as an Unfair
Claim Practice Act
 NAIC Task Force
Organized in late 2010, began work in early 2011
Response to Asymmetric Use of DMF for Annuities
“Top 40”
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NCOIL Unclaimed Property Model Act
 Requires an insurer to perform a comparison of its in-force life
insurance policies and retained asset accounts against the
SSDMF, or a similar data base, on at least a “quarterly” basis.
[amended 7/15/12 to provide for matching on a “semi-annual”
basis.]
 “Death Master File Match” is defined as a match of the social
security number or the name and date of birth of an insured,
annuity owner or retained asset account holder.
 Must complete a good faith effort to confirm the death of
insured and determine whether benefits are due w/n 90 days.
 Failure to comply constitutes a violation of states’ unfair
trade/business practices.
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2012 DMF Legislation
Statute
NCOIL
Match Criteria
Matching
Frequency
Fuzzy
Language
Included
90 Days
To Confirm
Matches
Effective Date
KY-HB135
Yes
Quarterly
No
Yes, using “good
faith” effort
01/01/13
MD-S77
Yes
Semi Annual
Yes *
Yes, using “good
faith” effort
10/01/13
AL-HB126
Yes
Every 3 years
No
Yes, using
“commercially
reasonable”
efforts
01/01/14
NY-SB2756
A1831**
Yes
Quarterly
No
Yes, using “good
faith” efforts
06/17/13
TN
Yes
Quarterly
Yes
Yes, using “good
faith” efforts
Did Not Pass
*An insurer shall perform a comparison of its insureds’ in-force life insurance policies and retained asset
accounts against a death master file… “using criteria reasonably designed to identify potential matches of its
insureds.”
** Amended in 2013 to add lapsed and terminated policies to the list of policies which must be included in
searches. Also requires an insurer to accept an alternative proof of loss if the beneficiary cannot obtain a
death certificate.
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2013 DMF Legislation
Statute
NCOIL
Match Criteria
Matching
Frequency
Fuzzy
Language
Included
90 Days
To Confirm Matches
Effective Date
Al-192
Yes
Once every three
years
No
Yes, using “commercially
reasonable” efforts
01/1/16
MA-H20
Yes
Semi Annual
No
Yes, using “good faith”
effort
Pending
MT-SB34
Yes
Semi Annual
No
Yes, using “reasonable”
effort
01/01/14
NV-SB226
Yes
Semi Annual
Yes*
Yes, using “reasonable”
efforts
07/01/14
NM-S312
Yes
Semi Annual
No
Yes, using “good faith”
efforts
07/01/13
ND-HB1171
Yes
Semi Annual
Yes*
W/I 12 mos., using a
“good faith” effort
08/01/13
RI-H5442
Yes
Semi Annual
Yes*
Yes, using “good faith”
effort
Did Not Pass
VT-H95
Yes
Semi Annual
No
Yes, using “good faith”
effort
09/01/13
* Insurer shall adopt reasonable procedures to account for common variations on data, such as names, initials,
transpositions and incomplete social security nos.
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Legislative Outcomes
 NCOIL Model – Retroactive Only (KY, MD, MT,
ND, NY, VT)
 Prospective Only (AL)
 Prospective Only for Companies That Have
Never Used the DMF (NM)
 Insurance Commissioner Given Discretion to
Grant Exemptions (ND, NV, RI)
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Trade Association Positions
ACLI
LIC
NALC
American Fraternal Alliance
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Legal Challenges to NCOIL Statutes
 On 11/08/12 Kemper filed Declaratory Judgment Action in KY
State Court challenging constitutionality of the retroactive
provisions of KY Statute.
 On 07/05/13 Kemper filed a similar Declaratory Judgment
Action in Circuit Court of Maryland challenging the
retroactive provisions of the MD Statute.
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Litigation Developments
 Andrews v. Nationwide- Ohio Court of Appeals
 Ferngold v. John Hancock (D. Mass. August 19, 2013)
 Total Asset Recovery Services, LLC v. MetLife, Inc. (Fla. Cir. Ct.
August 20, 2013)
 Chiang v. ANICO and Kemper
 West Virginia Litigation against 69 Insurance Companies
 Declaratory Judgment Actions brought by Kemper against
Illinois, California, Florida, and Pennsylvania Insurance
Departments.
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Up Next-2014 Legislative Session
 Legislative Landscape continues to evolve.
 More Unclaimed Property Bills are likely to be
introduced in 2014.
Retroactive Version of NCOIL Model
Prospective Version of NCOIL Model
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