The proposed bill, "An Act relative to unclaimed life insurance benefits," seeks to amend Chapter 175 of the General Laws by introducing a new section, 119D, which outlines the responsibilities of insurers regarding unclaimed life insurance benefits. The bill defines key terms such as "Contract," "Death Master File," "Knowledge of Death," and "Policy," while establishing the procedures insurers must follow to identify and locate beneficiaries of unclaimed policies. Insurers are required to perform semi-annual comparisons of their policies against the Death Master File to identify potential matches and must make documented good faith efforts to confirm the death of insured individuals and locate beneficiaries within a specified timeframe.

Additionally, the bill stipulates that insurers cannot charge beneficiaries for the costs associated with conducting Death Master File searches and mandates that unclaimed benefits, after a statutory period, must be reported to the state treasurer. The bill also clarifies that any unclaimed benefits will escheat to the state as unclaimed property if beneficiaries cannot be located, while ensuring that interest payable under existing laws is not considered unclaimed property. Overall, the legislation aims to enhance the accountability of insurers in managing unclaimed life insurance benefits and ensuring that rightful beneficiaries receive their due benefits.