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2011 SESSION

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HB 1458 Retained asset accounts; disclosures to beneficiaries.

Introduced by: Robert G. Marshall | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED HOUSE:

Life insurance; retained asset accounts. Requires insurance companies licensed in the Commonwealth that offer retained asset accounts for death benefits to provide the beneficiary, at the time a claim is made, with written information describing the settlement options available under the policy. If the insurer settles benefits through a retained asset account, the insurer shall provide the beneficiary with a supplemental contract that clearly discloses the rights of the beneficiary and the obligations of the insurer under the supplemental contract. The insurer is also required to make certain disclosures regarding retained asset accounts. SB 1388 is identical.

SUMMARY AS INTRODUCED:

Use of retained asset accounts; requirements. Establishes requirements for all insurance companies licensed in the Commonwealth that offer retained asset accounts for death benefits.  Under this measure, an insurer shall obtain the written consent of a beneficiary or policy owner before using a retained asset account as a mode of settlement.  An insurer shall provide all available benefit payment options including payment directly by check or use of a retained asset account.  The insurer shall also disclose the rights and obligations of both the beneficiary and the insurer under the retained asset account option, any interest being paid under the options and how it is calculated, and an explanation of all the account’s features. A violation of the measure is an unfair trade practice under Chapter 5 (§ 38.2-500 et seq.) of Title 38.2 and subject to the penalties contained in that chapter.