UNCLAIMED PROPERTY: WHAT THE INSURANCE INDUSTRY NEEDS TO KNOW & BEST ...

嚜燃NCLAIMED PROPERTY:

WHAT THE INSURANCE INDUSTRY

NEEDS TO KNOW & BEST PRACTICES

Ezra Church, Scott Fischer, Matthew Mock, Adam

Beckerink, & Laura Grace Mezher

January 16, 2020

? 2019 Morgan, Lewis & Bockius LLP

Agenda

? Introduction

? Unclaimed Property Overview

? Unclaimed Property Regulators Target Insurance Industry

? Best Practices

? New Legislation

2

UNCLAIMED PROPERTY

OVERVIEW

Unclaimed Property Introduction

General Information

? All 50 states, the District of Columbia, Puerto Rico, and the US Virgin Islands have

enacted unclaimed property laws.

? The purpose of unclaimed property laws is to ensure the protection of abandoned

property until the rightful owner is located. Moreover, states use any derivative funds

earned on such property for the public good.

? States actively pursue unclaimed property as an additional source of revenue for the

state, which avoids raising taxes.

? States＊ unclaimed property laws apply to all entity types, including:

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每

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Corporations

S Corporations

Partnerships

Limited Liability Companies

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Unclaimed Property Introduction

What is Unclaimed Property?

? Intangible personal property for which there has been no owner activity for a specified period of time

(※dormancy period§).

? General examples of unclaimed property:

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Uncashed or voided payroll or commission checks

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Uncashed or voided payable/vendor checks

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Gift certificates/gift cards

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Customer merchandise credits, layaways, deposits, refunds or rebates

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Overpayments/unidentified remittances

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Suspense accounts

? Examples of unclaimed property specific to insurance companies:

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Unused/outstanding benefits (non-ERISA)

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Insurance polices (e.g., life insurance, health insurance, property/casualty insurance)

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Annuity payments

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Matured endowments

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Retirement accounts

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Pension accounts

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