Legislative Updates Relating to Life Insurance, Savings Bonds, and Dormancy Periods
Death Master File Searches – Idaho Senate Bill 1023 was enacted in March, to come into effect on July 1, 2016. Arkansas Senate Bill 768, a similar bill, was enacted earlier this month, to come into effect June 30, 2016. Utah House Bill 168 comes into effect in July of this year. These laws require, among other things, life insurers to do a search of in-force policies against the Social Security Death Master File on a semiannual basis.
Extension of State Unclaimed Property Acts to U.S. Savings Bonds — Indiana Senate Bill 282 and Arkansas Senate Bill 356 apply the unclaimed property acts in those states to U.S. savings bonds that have stopped earning interest, or matured, respectively.
Dormancy Period Changes — Arkansas House Bill 1782 reduces the dormancy period for certain corporate bonds, deposit accounts and mineral proceeds from 5 years to 3 years.