Section 3.26.860. Disclosure of settlement options.

	(a)  An insurer shall provide to the beneficiary, at the time a claim is made, a written description of settlement options available under the policy and how to obtain specific details regarding the options.  
	(b)  The insurer shall provide the following written disclosures to the beneficiary about retained asset accounts before the retained asset account option is selected:   
		(1) a statement that payment of the full benefit amount is accomplished by delivery of a draft book or check book;   
		(2) a statement that one draft or check may be written to access the entire amount, including interest, of the retained asset account at any time;   
		(3) whether other settlement options are preserved until the entire balance is withdrawn or the balance drops below the insurer's minimum balance requirements;   
		(4) a statement identifying the account as either a checking or a draft account and an explanation of how the account works;   
		(5) a description of the account services provided and contact information where the beneficiary may request and obtain more details about the account services;   
		(6) a description of any fees charged, if applicable;   
		(7) the frequency of statements showing   
			(A) the current retained asset account balance;   
			(B) the interest credited;   
			(C) withdrawals; and   
			(D) any other account activity;   
		(8) the minimum interest rate credited to the retained asset account and how actual interest is determined;   
		(9) a statement that the interest earned on the account may be taxable;  
		(10) a statement that retained asset account funds are not guaranteed by the Federal Deposit Insurance Corporation but are guaranteed by the state guaranty association;  
		(11) a description of the insurer's policy regarding retained asset accounts that become inactive.  

Authorities

21.06.090;21.96.030

Notes

Authority

AS 21.06.090 AS 21.96.030

History

Eff. 12/7/2011, Register 200