(a) A complete listing and clear explanation of all of the life insurance proceeds payment options available to the beneficiary in written or electronic format shall accompany the tender of other than a lump sum payment of a life insurance death benefit.
(b) The use of a retained asset account shall require in the description and explanation pursuant to subsection (a) herein the following:
(1) The recommendation to consult a tax, investment, or other financial advisor regarding tax liability and investment options;
(2) The initial interest rate, when and how interest rates may change, and any dividends and other gains that may be paid or distributed to the account holder;
(3) The custodian of the funds or assets of the account;
(4) The coverage guaranteed by the Federal Deposit Insurance Corporation (FDIC), if any, and the amount of such coverage;
(5) The limitations, if any, on the numbers and amounts of withdrawals of funds from the account, including any minimum or maximum benefit payment amounts;
(6) The delays, if any, that the account holder may encounter in completing authorized transactions and the anticipated duration of such delays;
(7) The services provided for a fee, including a list of the fees or the method of their calculation;
(8) The nature and frequency of statements of account;
(9) The payment of some or all of the proceeds of the death benefit may be by the delivery of checks, drafts, or other instruments to access the available funds;
(10) The entire proceeds are available to the account holder by the use of one such check, draft, or other instrument;
(11) The insurer or a related party may derive income, in addition to any fees charged on the account, from the total gains received on the investment of the balance of funds in the account;
(12) The telephone number, address, and other contact information, including website address, to obtain additional information regarding the account; and
(13) The following statement: "For further information, please contact the department of business regulation."
(c) The writings produced to satisfy the requirements of this section shall be in easy-to-understand language and bold or at least twelve (12) point type.
History of Section.
P.L. 2011, ch. 339, § 1; P.L. 2011, ch. 370, § 1.