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Retained Asset Accounts
The purpose of this Bulletin is to establish disclosure standards regarding the payment of life insurance benefits to a beneficiary by means of a "retained asset account." "Retained Asset Account" means any mechanism whereby the settlement of proceeds payable under a life insurance policy is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer, pursuant to a supplementary contract not involving annuity benefits. Insurers shall implement these standards no later than June 1, 2011.
1.Explanation of Settlement Options
The insurer shall provide the beneficiary, at the time a claim is made, written information describing the settlement options available under the policy and how to obtain specific details relevant to the options.
2. Supplemental Contract
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 obligations of the insurer under the supplemental contract.
3. Disclosures for Retained Asset Accounts to Beneficiaries
The insurer shall provide the following written disclosures to the beneficiary before the account is selected, if optional, or established, if not:
Anyone having questions about this Bulletin should contact the Bureau of Insurance at (207) 624-8475 or toll-free in Maine at (800) 300-5000.
Last Updated: September 27, 2010
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