§ 1470. Knowledge of death of insured or annuitant
(a) As used in this section, “Death Master File” means the U.S. Social Security Administration
Death Master File or other database or service that is at least as comprehensive as
the U.S. Social Security Administration Death Master File for determining that an
individual reportedly has died.
(b) With respect to a life or endowment insurance policy or annuity contract for which
an amount is owed on proof of death, but which has not matured by proof of death of
the insured or annuitant, the company has knowledge of the death of an insured or
annuitant when:
(1) the company receives a death certificate or court order determining that the insured
or annuitant has died;
(2) due diligence, performed as required pursuant to 8 V.S.A. part 3, to maintain contact
with the insured or annuitant or determine whether the insured or annuitant has died,
validates the death of the insured or annuitant;
(3) the company conducts a comparison for any purpose between a Death Master File and
the names of some or all of the company’s insureds or annuitants, finds a match that
provides notice that the insured or annuitant has died, and validates the death;
(4) the Administrator or the Administrator’s agent conducts a comparison for the purpose
of finding matches during an examination conducted under subchapter 10 of this chapter
between a Death Master File and the names of some or all of the company’s insureds
or annuitants, finds a match that provides notice that the insured or annuitant has
died, and the company validates the death; or
(5) the company:
(A) receives notice of the death of the insured or annuitant from an administrator, beneficiary,
policy owner, relative of the insured, or trustee or from a personal representative,
guardian, executor, or other legal representative of the insured’s or annuitant’s
estate; and
(B) validates the death of the insured or annuitant.
(c) The following rules apply under this section:
(1) A Death Master File match under subdivision (b)(3) or (4) of this section occurs if
the criteria for an exact or partial match are satisfied as provided by:
(A) law of this State other than this chapter;
(B) a rule or policy adopted by the Commissioner of the Vermont Department of Financial
Regulation pursuant to 3 V.S.A. chapter 25; or
(C) section 1472 of this title.
(2) The Death Master File match does not constitute proof of death for the purpose of
submission to an insurance company of a claim by a beneficiary, annuitant, or owner
of the policy or contract for an amount due under an insurance policy or annuity contract.
(3) The Death Master File match or validation of the insured’s or annuitant’s death does
not alter the requirements for a beneficiary, annuitant, or owner of the policy or
contract to make a claim to receive proceeds under the terms of the policy or contract.
(4) If no provision in 8 V.S.A. part 3 establishes a time for validation of a death of
an insured or annuitant, the insurance company shall make a good faith effort using
other available records and information to validate the death and document the effort
taken not later than 90 days after the insurance company has notice of the death.
(d) This chapter does not affect the determination of the extent to which an insurance
company before January 1, 2021, had knowledge of the death of an insured or annuitant
or was required to conduct a Death Master File comparison to determine whether amounts
owed by the company on a life or endowment insurance policy or annuity contract were
presumed abandoned or unclaimed. (Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021; amended 2023, No. 161 (Adj. Sess.), § 26, eff. June 6, 2024.)