Compiled January, 2015
Our review of the annotated history reveals the following legislative history (every “c.” below represents a separate legislative bill):
Added: 1975, c. 876, which read as follows:
(a) Notwithstanding any other provision of law, each insurer admitted to transact life insurance in this state which fails or refuses to pay the proceeds of, or payments under, any policy of life insurance issued by it within 30 days after the date of death of the insured shall pay interest, at a rate not less than the then current rate of interest on death proceeds left on deposit with the insurer computed from the date of the insured’s death, on any moneys payable and unpaid after the expiration of such 30-day period. This section shall apply only to deaths of insureds which occur on or after January 1, 1976.
(b) Nothing in this section shall be construed to allow any insurer admitted to transact life insurance in this state to withhold payment of money payable under a life insurance policy to any beneficiary for a period longer than reasonably necessary to transmit such payment. Whenever possible payment shall be made within 30 days after the date of death of the insured.
(c) In any case in which interest on the proceeds of, or payments under, any policy of life insurance becomes payable pursuant to subdivision (a), the insurer shall notify the named beneficiary or beneficiaries at their last known address that interest will be paid on the proceeds of, or payments under, such policy from the date of death of the named insured. Such notice shall specify the rate of interest to be paid.
(d) This section shall not require the payment of interest in any case in which the beneficiary elects in writing delivered to the insurer to receive the proceeds of, or payments under, the policy by any means other than a lump sum payment thereof.
Amended: 2004, c. 601; 2004, c. 775 – both double-joined 2004 bills offered language to rewrite the statute to read as it does today.
Three bills affected this section.
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