General Question

imrainmaker's avatar

What happens to the unclaimed insurance money of policyholders lying with insurance companies?

Asked by imrainmaker (8336points) July 29th, 2018

I’m curious to know what happens in this scenario.

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9 Answers

janbb's avatar

Are you talking about life insurance or property/casualty? In P & C the premise is that the money is a pool to pay out the few who need to make claims.

imrainmaker's avatar

I’m talking about life insurance. This is old story just to give an idea what I’m referring to.

zenvelo's avatar

It gets escheated to the State. The state then holds the funds and periodically publishes info on what is being held. If you can make a claim, and it goes through the proof process, they send you the money.

The State May hold the funds for a very long time. California currently hold s$8 billion in escheatment funds.

MollyMcGuire's avatar

It goes to the state. They all have a way for you to check to see if they are holding assets that are yours.

MooCows's avatar

Then the state has a giant party with it!

imrainmaker's avatar

Will the state hold it for indefinite time or is there some limit?

Tropical_Willie's avatar

There is a limit and I think it varies:

“In the United States, the National Conference of Commissioners on Uniform State Laws sought to address the problems arising from these types of property through provisions of the Uniform Unclaimed Property Act. The act was first drafted and promulgated in 1981 and a revised version, the Revised Uniform Unclaimed Property Act was introduced in 1995. The act specifically focuses on the problem of unclaimed money in bank accounts and corporate coffers, and the corresponding escheatment.

As a result of the Act, each state that has adopted the act operates an Unclaimed Property fund in which the proceeds from abandoned bank accounts, unpresented checks, etc. are to be turned over to the state after a specified period of time. Depending on state law, the money may be held either in perpetuity (i.e., the funds never escheat to the state; an example would be Texas), or after a long period of time (whereby it is presumed that the owner is deceased with no heirs) the funds will escheat to the state. Due to the increasing mobility of the population, 39 states have joined together to operate ‘MissingMoney dot com’, a searchable database which lists unclaimed funds in these states. Another website at ‘Unclaimed dot org’ allows searches without charge for the remaining 11 states. Many commercial websites also offer this service at a charge. A searchable database for unclaimed money and property is available in Canada from the Bank of Canada.

A similar problem has developed with respect to orphan works, artistic or literary works for which a copyright is in effect, but for whom the copyright owner cannot be found.”

Lifted from Wikipedia

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