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H0175..............................................................by BUSINESS
LIFE INSURANCE - BENEFITS - Adds to existing law to require that the proceeds
of benefits under a life insurance policy be paid within a certain time
period; and to provide for payment of interest for untimely payment in certain
circumstances.
02/06 House intro - 1st rdg - to printing
02/07 Rpt prt - to Bus
02/12 Rpt out - rec d/p - to 2nd rdg
02/13 2nd rdg - to 3rd rdg
02/14 3rd rdg - PASSED - 61-2-7
AYES -- Andersen, Bauer, Bedke, Bell, Black, Block, Boe, Bolz, Bradford,
Campbell, Cannon, Clark, Crow, Cuddy, Deal, Denney, Douglas, Edmunson,
Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood,
Henbest, Jaquet, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Raybould,
Ridinger, Ring, Ringo, Roberts, Robison, Sali, Sayler,
Schaefer(Schaefer), Shepherd, Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Mr. Speaker
NAYS -- Barraclough, Nielsen
Absent and excused -- Barrett, Bieter, Collins, Eberle, Jones, Rydalch,
Wood
Floor Sponsor - Jaquet
Title apvd - to Senate
02/17 Senate intro - 1st rdg - to Com/HuRes
02/28 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Calabretta,
Cameron, Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram,
Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
Noble, Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett,
Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Burkett, Davis
Floor Sponsor - Cameron
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/13 Pres signed
03/14 To Governor
03/17 Governor signed
Session Law Chapter 85
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 175
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO LIFE INSURANCE TRADE PRACTICES; AMENDING CHAPTER 13, TITLE 41,
3 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 41-1336, IDAHO CODE, TO
4 REQUIRE PAYMENT OF THE PROCEEDS OF BENEFITS UNDER A LIFE INSURANCE POLICY
5 WITHIN A SPECIFIED TIME PERIOD, TO PROVIDE FOR THE PAYMENT OF INTEREST ON
6 DEATH BENEFITS IF TIMELY PAYMENT IS NOT MADE, TO PROVIDE THE RATE OF
7 INTEREST AND TO PROVIDE THAT THE REQUIREMENT OF THE PAYMENT OF INTEREST
8 APPLIES ONLY TO LUMP SUM PAYMENTS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Chapter 13, Title 41, Idaho Code, be, and the same is
11 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
12 ignated as Section 41-1336, Idaho Code, and to read as follows:
13 41-1336. LIFE INSURANCE -- PAYMENT OF INTEREST ON BENEFITS. (1) An
14 insurer shall pay the proceeds of any benefits under a policy of life insur-
15 ance not more than thirty (30) days after the insurer has received satisfac-
16 tory proof of death of the insured. Except as provided in subsection (2) of
17 this section, if the proceeds are not paid within the thirty (30) day period,
18 the insurer shall also pay interest on the proceeds from the date of death of
19 the insured to the date when the proceeds are paid.
20 (2) If satisfactory proof of death is received more than one hundred
21 eighty (180) days after the death of the insured and the death benefits are
22 not paid within thirty (30) days after satisfactory proof of death has been
23 received by the insurer, interest shall accrue from the date on which satis-
24 factory proof was received by the insurer to the date when proceeds are paid.
25 (3) The rate of interest to be paid by the insurer under subsections (1)
26 and (2) of this section shall be the current rate of interest on death pro-
27 ceeds on deposit with the insurer; provided however, that if the insurer holds
28 its deposits in a noninterest-bearing account or in an account bearing less
29 than two percent (2%) interest per annum, the rate of interest to be paid
30 shall be the one (1) month United States government securities treasury con-
31 stant maturity rate as disclosed in the federal reserve statistical release
32 publication H.15, selected interest rates, as of the first of the month pre-
33 ceding the date of death, plus two (2) percentage points.
34 (4) A payment of interest shall not be required under this section in any
35 case in which the beneficiary elects to receive the proceeds under the policy
36 by any means other than a lump sum payment.
STATEMENT OF PURPOSE
RS 12413
Life insurers are not currently required to pay interest on death
proceeds to Idaho residents. This act provides that a life insurer
must pay interest on death proceeds if payment of the proceeds is not
made to the beneficiary within thirty days after satisfactory proof of
death is received by the insurer.
FISCAL IMPACT
None.
Contact: John Mackey
332-2685
STATEMENT OF PURPOSE/FISCAL NOTE H 175