§ 58-58-97. (Effective October 1, 2010) Provision of life insurance information upon notification of insured's death.
§ 58‑58‑97. (Effective October 1, 2010) Provision of life insurance information uponnotification of insured's death.
(a) Any person licensedto practice funeral directing or any employee of a funeral establishmentlicensed under the provisions of Article 13A of Chapter 90 of the GeneralStatutes providing funeral service, as that term is defined in G.S. 90‑210.20,for a deceased person insured or believed to be insured under a contract oflife insurance may request information regarding the deceased person's lifeinsurance contracts by providing an insurer with (i) a copy of a notificationof death filed pursuant to G.S. 130A‑112 and (ii) written authorizationfrom the person or persons with legal authority to direct disposition of thedeceased's body as prescribed under G.S. 90‑210.124 or G.S. 130A‑420.As soon as possible after receipt of the request, the life insurance companyshall inform the person authorized by this section to make an inquiry of thefollowing:
(1) The existence of anycontract insuring the life of the deceased person.
(2) Any beneficiaries onrecord under any life insurance contract insuring the life of the deceasedperson.
(3) The amount of anyliens or loans outstanding on the policy.
(4) The amount ofbenefits payable to the beneficiaries.
(5) Whether the policyhas been reinstated within the last 24 months.
The insurer shall provide a claimform to any person or assignee making the request.
(b) If any personmaking a written request under subsection (a) of this section who has providedall the information required by subsection (a) of this section does not receivea timely response from the insurer, then the person may refer the request tothe Consumer Services Division of the Department, which shall treat thereferral as a consumer complaint. The referral shall include all theinformation provided to the insurer under subsection (a) of this section aswell as copies of all communications and information received from the insurerregarding the request for information.
(c) If the beneficiaryof record under the life insurance contract is not the estate of the deceased,then any person authorized to request information under subsection (a) of thissection shall make reasonable efforts to locate the beneficiaries within 100hours of receiving information from the insurance carrier regarding any lifeinsurance contracts and shall provide to all beneficiaries all documents andinformation obtained from the insurance carrier. The person obtaining theinformation also shall inform all beneficiaries in writing in bold print that"THE BENEFICIARY OF A LIFE INSURANCE POLICY HAS NO LEGAL DUTY OROBLIGATION TO SPEND ANY OF THAT MONEY ON THE FUNERAL, DEBTS, OR OBLIGATIONS OFTHE DECEASED" and shall do so before discussing with the beneficiariesfinancial arrangements for burial of the deceased.
(d) Any licensee oremployee of a funeral establishment licensed under Article 13A of Chapter 90 ofthe General Statutes who makes a false request for information under thissection or fails to do that required by subsection (c) of this section shall bedeemed guilty of fraud or misrepresentation in the practice of funeral serviceas defined in G.S. 90‑210.25(e)(1)b. and unfit to practice funeralservice. (2009‑566,s. 23.)