This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Feb 12, 2019 at 3:18 PM by lpoole.
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7 LONG TITLE
8 General Description:
9 This bill modifies the Uniform Unclaimed Property Act by amending unclaimed
10 property provisions.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides and amends definitions;
14 ▸ provides that an indication of apparent owner interest for determining whether
15 property is presumed abandoned includes any other action by the apparent owner
16 which reasonably demonstrates to the holder that the apparent owner knows that the
17 account exists;
18 ▸ specifies when a company is deemed to have knowledge of the death of an insured
19 or annuitant with respect to a life or endowment insurance policy or annuity contract
20 for which an amount is owed on proof of death, but which has not matured by proof
21 of death of the insured or annuitant;
22 ▸ specifies rules for when certain death master file matches occur;
23 ▸ provides that a death master file match does not constitute proof of death for the
24 purpose of a beneficiary, annuitant, or owner of an insurance policy or annuitant
25 contract submitting a claim to an insurance company;
26 ▸ provides that the death master file match or validation of the insured's or annuitant's
27 death does not alter the requirements for a beneficiary, annuitant, or owner of an
28 insurance policy or annuity contract to make a claim to receive proceeds under the
29 terms of the policy or contract;
30 ▸ requires an insurance company to make a good faith effort using other available
31 records and information to validate a death and document the effort taken in certain
32 circumstances; and
33 ▸ makes technical changes.
34 Money Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 None
38 Utah Code Sections Affected:
39 AMENDS:
40 67-4a-102, as last amended by Laws of Utah 2018, Chapter 459
41 67-4a-208, as repealed and reenacted by Laws of Utah 2017, Chapter 371
42 ENACTS:
43 67-4a-215, Utah Code Annotated 1953
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45 Be it enacted by the Legislature of the state of Utah:
46 Section 1. Section 67-4a-102 is amended to read:
47 67-4a-102. Definitions.
48 As used in this chapter:
49 (1) "Administrator" means the deputy state treasurer assigned by the state treasurer.
50 (2) (a) "Administrator's agent" means a person with which the administrator contracts
51 to conduct an examination under Part 10, Verified Report of Property and Examination of
52 Records, on behalf of the administrator.
53 (b) [
54 person and each individual participating in the examination on behalf of the person or
55 contractor.
56 (3) "Apparent owner" means a person whose name appears on the records of a holder
57 as the owner of property held, issued, or owing by the holder.
58 (4) (a) "Bank draft" means a check, draft, or similar instrument on which a banking or
59 financial organization is directly liable.
60 (b) "Bank draft" includes:
61 (i) a cashier's check; and
62 (ii) a certified check.
63 (c) "Bank draft" does not include:
64 (i) a traveler's check; or
65 (ii) a money order.
66 (5) "Banking organization" means:
67 (a) a bank;
68 (b) an industrial bank;
69 (c) a trust company;
70 (d) a savings bank; or
71 (e) any organization defined by other law as a bank or banking organization.
72 (6) "Business association" means a corporation, joint stock company, investment
73 company other than an investment company registered under the Investment Company Act of
74 1940, partnership, unincorporated association, joint venture, limited liability company,
75 business trust, trust company, land bank, safe deposit company, safekeeping depository,
76 financial organization, banking organization, insurance company, federally chartered entity,
77 utility, sole proprietorship, or other business entity, whether or not for profit.
78 (7) "Cashier's check" means a check that:
79 (a) is drawn by a banking organization on itself;
80 (b) is signed by an officer of the banking organization; and
81 (c) authorizes payment of the amount shown on the check's face to the payee.
82 (8) "Class action" means a legal action:
83 (a) certified by the court as a class action; or
84 (b) treated by the court as a class action without being formally certified as a class
85 action.
86 (9) "Confidential information" means records, reports, and information that is
87 confidential under Section 67-4a-1402.
88 (10) (a) "Deposit in a financial institution" means a demand, savings, or matured time
89 deposit with a banking or financial organization.
90 (b) "Deposit in a financial institution" includes:
91 (i) any interest or dividends on a deposit; and
92 (ii) a deposit that is automatically renewable.
93 (11) "Domicile" means:
94 (a) for a corporation, the state of the corporation's incorporation;
95 (b) for a business association other than a corporation, whose formation requires a
96 filing with a state, the state of the business association's filing;
97 (c) for a federally chartered entity or an investment company registered under the
98 Investment Company Act of 1940, the state of the entity's or company's home office; and
99 (d) for any other holder, the state of the holder's principal place of business.
100 (12) "Electronic" means relating to technology having electrical, digital, magnetic,
101 wireless, optical, electromagnetic, or similar capabilities.
102 (13) "Electronic mail" means a communication by electronic means that is
103 automatically retained and stored and may be readily accessed or retrieved.
104 (14) "Financial organization" means:
105 (a) a savings and loan association; or
106 (b) a credit union.
107 (15) (a) "Game-related digital content" means digital content that exists only in an
108 electronic game or electronic-game platform.
109 (b) "Game-related digital content" includes:
110 (i) game-play currency, including a virtual wallet, even if denominated in United States
111 currency; and
112 (ii) the following, if for use or redemption only within the game or platform or another
113 electronic game or electronic-game platform:
114 (A) points sometimes referred to as gems, tokens, gold, and similar names; and
115 (B) digital codes.
116 (c) "Game-related digital content" does not include an item that the issuer:
117 (i) permits to be redeemed for use outside a game or platform for:
118 (A) money; or
119 (B) goods or services that have more than minimal value; or
120 (ii) otherwise monetizes for use outside a game or platform.
121 (16) (a) "Gift card" means a record that:
122 (i) is usable at:
123 (A) a single merchant; or
124 (B) a specified group of merchants;
125 (ii) is prefunded before the record is used; and
126 (iii) can be used for purchases of goods or services.
127 (b) "Gift card" includes a prepaid commercial mobile radio service as defined in 47
128 C.F.R. Sec. 20.3.
129 (17) "Holder" means a person obligated to hold for the account of, or to deliver or pay
130 to, the owner property subject to this chapter.
131 (18) "Insurance company" means an association, corporation, or fraternal or mutual
132 benefit organization, whether or not for profit, engaged in the business of providing life
133 endowments, annuities, or insurance, including:
134 (a) accident insurance;
135 (b) burial insurance;
136 (c) casualty insurance;
137 (d) credit life insurance;
138 (e) contract performance insurance;
139 (f) dental insurance;
140 (g) disability insurance;
141 (h) fidelity insurance;
142 (i) fire insurance;
143 (j) health insurance;
144 (k) hospitalization insurance;
145 (l) illness insurance;
146 (m) life insurance, including endowments and annuities;
147 (n) malpractice insurance;
148 (o) marine insurance;
149 (p) mortgage insurance;
150 (q) surety insurance;
151 (r) wage protection insurance; and
152 (s) worker compensation insurance.
153 (19) "Last known address" means a description of the location of the apparent owner
154 sufficient for the purpose of the delivery of mail.
155 (20) (a) "Loyalty card" means a record given without direct monetary consideration
156 under an award, reward, benefit, loyalty, incentive, rebate, or promotional program that may be
157 used or redeemed only to obtain goods or services or a discount on goods or services.
158 (b) "Loyalty card" does not include a record that may be redeemed for money or
159 otherwise monetized by the issuer.
160 (21) (a) "Mineral" means any substance that is ordinarily and naturally considered a
161 mineral, regardless of the depth at which the substance is found.
162 (b) "Mineral" includes:
163 (i) building stone;
164 (ii) cement material;
165 (iii) chemical raw material;
166 (iv) coal;
167 (v) colloidal and other clay;
168 (vi) fissionable and nonfissionable ore;
169 (vii) gas;
170 (viii) gemstone;
171 (ix) gravel;
172 (x) lignite;
173 (xi) oil;
174 (xii) oil shale;
175 (xiii) other gaseous liquid or solid hydrocarbon;
176 (xiv) road material;
177 (xv) sand;
178 (xvi) steam and other geothermal resources;
179 (xvii) sulphur; and
180 (xviii) uranium.
181 (22) (a) "Mineral proceeds" means an amount payable:
182 (i) for extraction, production, or sale of minerals; or
183 (ii) for the abandonment of an interest in minerals.
184 (b) "Mineral proceeds" includes an amount payable:
185 (i) for the acquisition and retention of a mineral lease, including a bonus, royalty,
186 compensatory royalty, shut-in royalty, minimum royalty, or delay rental;
187 (ii) for the extraction, production, or sale of minerals, including a net revenue interest,
188 royalty, overriding royalty, extraction payment, or production payment; and
189 (iii) under an agreement or option, including a joint-operating agreement, unit
190 agreement, pooling agreement, and farm-out agreement.
191 (23) (a) "Money order" means a payment order for a specified amount of money.
192 (b) "Money order" includes an express money order and a personal money order on
193 which the remitter is the purchaser.
194 (c) "Money order" does not include a cashier's check.
195 (24) "Municipal bond" means a bond or evidence of indebtedness issued by a
196 municipality or other political subdivision of a state.
197 (25) (a) "Nonfreely transferable security" means a security that cannot be delivered to
198 the administrator by the Depository Trust Clearing Corporation or a similar custodian of
199 securities providing post-trade clearing and settlement services to financial markets or cannot
200 be delivered because there is no agent to effect transfer.
201 (b) "Nonfreely transferable security" includes a worthless security.
202 (26) (a) "Owner" means a person that has a legal, beneficial, or equitable interest in
203 property subject to this chapter or the person's legal representative when acting on behalf of the
204 owner.
205 (b) "Owner" includes:
206 (i) a depositor, for a deposit;
207 (ii) a beneficiary, for a trust other than a deposit in trust;
208 (iii) a creditor, claimant, or payee, for other property; and
209 (iv) the lawful bearer of a record that may be used to obtain money, a reward, or a thing
210 of value.
211 (27) "Payroll card" means a record that evidences a payroll card account as defined in
212 12 C.F.R. Part 1005, Electronic Fund Transfers (Regulation E).
213 (28) "Person" means:
214 (a) an individual;
215 (b) an estate;
216 (c) a business association;
217 (d) a public corporation;
218 (e) a government entity;
219 (f) an agency;
220 (g) a trust;
221 (h) an instrumentality; or
222 (i) any other legal or commercial entity.
223 (29) (a) "Property" means tangible property described in Section 67-4a-205 or a fixed
224 and certain interest in intangible property held, issued, or owed in the course of a holder's
225 business or by a government entity.
226 (b) "Property" includes:
227 (i) all income from or increments to the property;
228 (ii) property referred to as or evidenced by:
229 (A) money, virtual currency, interest, or a dividend, check, draft, or deposit;
230 (B) a credit balance, customer's overpayment, stored-value card, payroll card, security
231 deposit, refund, credit memorandum, unpaid wage, unused ticket for which the issuer has an
232 obligation to provide a refund, mineral proceeds, or unidentified remittance; and
233 (C) a security except for:
234 (I) a worthless security; or
235 (II) a security that is subject to a lien, legal hold, or restriction evidenced on the records
236 of the holder or imposed by operation of law, if the lien, legal hold, or restriction restricts the
237 holder's or owner's ability to receive, transfer, sell, or otherwise negotiate the security;
238 (iii) a bond, debenture, note, or other evidence of indebtedness;
239 (iv) money deposited to redeem a security, make a distribution, or pay a dividend;
240 (v) an amount due and payable under an annuity contract or insurance policy;
241 (vi) an amount distributable from a trust or custodial fund established under a plan to
242 provide health, welfare, pension, vacation, severance, retirement, death, stock purchase,
243 profit-sharing, employee-savings, supplemental-unemployment insurance, or a similar benefit;
244 and
245 (vii) an amount held under a preneed funeral or burial contract, other than a contract
246 for burial rights or opening and closing services, where the contract has not been serviced
247 following the death or the presumed death of the beneficiary.
248 (c) "Property" does not include:
249 (i) property held in a plan described in Section 529A, Internal Revenue Code;
250 (ii) game-related digital content;
251 (iii) a loyalty card;
252 (iv) an in-store credit for returned merchandise; [
253 (v) patronage capital of an electric, telephone, or agricultural cooperative; or
254 [
255 (30) "Putative holder" means a person believed by the administrator to be a holder,
256 until:
257 (a) the person pays or delivers to the administrator property subject to this chapter; or
258 (b) the administrator or a court makes a final determination that the person is or is not a
259 holder.
260 (31) "Record" means information that is inscribed on a tangible medium or that is
261 stored in an electronic or other medium and is retrievable in perceivable form.
262 (32) "Security" means:
263 (a) a security as defined in Revised Article 8 of the Uniform Commercial Code; or
264 (b) a security entitlement as defined in Revised Article 8 of the Uniform Commercial
265 Code, including a customer security account held by a registered broker-dealer, to the extent
266 the financial assets held in the security account are not:
267 (i) registered on the books of the issuer in the name of the person for which the
268 broker-dealer holds the assets;
269 (ii) payable to the order of the person;
270 (iii) specifically endorsed to the person; or
271 (iv) an equity interest in a business association not included in this Subsection (32).
272 (33) "Sign" means, with present intent to authenticate or adopt a record:
273 (a) to execute or adopt a tangible symbol; or
274 (b) to attach to or logically associate with the record an electronic symbol, sound, or
275 process.
276 (34) "State" means a state of the United States, the District of Columbia, the
277 Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular
278 possession subject to the jurisdiction of the United States.
279 (35) (a) "Stored-value card" means a reloadable or non-reloadable record:
280 (i) with a monetary value or amount that can be:
281 (A) used to purchase or otherwise acquire goods or services;
282 (B) used to obtain cash; or
283 (C) redeemed for cash value; and
284 (ii) of which the issuer or the issuer's agent has a record of the name and last known
285 address of the apparent owner and the address is in the state of Utah.
286 (b) "Stored-value card" does not include:
287 (i) a record described in Subsection (35)(a) that is purchased or acquired by an
288 intermediary or other party for resale, for sale on consignment, or as a gift to the card user,
289 when the issuer does not know the name and address of the ultimate buyer or recipient of the
290 record;
291 (ii) a loyalty card;
292 (iii) a gift card; or
293 (iv) game-related digital content.
294 (36) "Utility" means a person that owns or operates for public use a plant, equipment,
295 real property, franchise, or license for:
296 (a) the transmission of communications or information;
297 (b) the production, storage, transmission, sale, delivery, or furnishing of electricity,
298 water, steam, or gas; or
299 (c) the provision of sewage or septic services, or trash, garbage, or recycling disposal.
300 (37) (a) "Virtual currency" means a digital representation of value used as a medium of
301 exchange, unit of account, or store of value, which does not have legal tender status recognized
302 by the United States.
303 (b) "Virtual currency" does not include:
304 (i) the software or protocols governing the transfer of the digital representation of
305 value;
306 (ii) game-related digital content;
307 (iii) a loyalty card;
308 (iv) membership rewards; or
309 (v) a gift card.
310 (38) "Worthless security" means a security whose cost of liquidation and delivery to
311 the administrator would exceed the value of the security on the date a report is due under this
312 chapter.
313 Section 2. Section 67-4a-208 is amended to read:
314 67-4a-208. Indication of apparent owner interest in property.
315 (1) The period after which property is presumed abandoned is measured from the later
316 of:
317 (a) the date the property is presumed abandoned under this part; or
318 (b) the latest indication of interest by the apparent owner in the property.
319 (2) Under this chapter, an indication of an apparent owner's interest in property
320 includes:
321 (a) a record communicated by the apparent owner to the holder or agent of the holder
322 concerning the property or the account in which the property is held;
323 (b) an oral communication by the apparent owner to the holder or agent of the holder
324 concerning the property or the account in which the property is held, if the holder or the
325 holder's agent contemporaneously makes and preserves a record of the fact of the apparent
326 owner's communication;
327 (c) presentment of a check or other instrument of payment of a dividend, interest
328 payment, or other distribution, or evidence of receipt of a distribution made by electronic or
329 similar means, with respect to an account, underlying security, or interest in a business
330 association;
331 (d) activity directed by an apparent owner in the account in which the property is held,
332 including accessing the account or information concerning the account, or a direction by the
333 apparent owner to increase, decrease, or otherwise change the amount or type of property held
334 in the account;
335 (e) a deposit into or withdrawal from an account at a banking organization or financial
336 organization, [
337 by the apparent owner [
338 (f) any other action by the apparent owner which reasonably demonstrates to the holder
339 that the apparent owner knows that the account exists; and
340 [
341 (3) An action by an agent or other representative of an apparent owner, other than the
342 holder acting as the apparent owner's agent, is presumed to be an action on behalf of the
343 apparent owner.
344 (4) A communication with an apparent owner by a person other than the holder or the
345 holder's representative is not an indication of interest in the property by the apparent owner
346 unless a record of the communication evidences the apparent owner's knowledge of a right to
347 the property.
348 (5) If the insured dies or the insured or beneficiary of an insurance policy otherwise
349 becomes entitled to the proceeds before depletion of the cash surrender value of the policy by
350 operation of an automatic premium loan provision or other nonforfeiture provision contained in
351 the policy, the operation does not prevent the policy from maturing or terminating.
352 Section 3. Section 67-4a-215 is enacted to read:
353 67-4a-215. Knowledge of death of insured or annuitant.
354 (1) As used in this section Ŝ→ [
354a (a) ←Ŝ " Ŝ→ [
355 Ŝ→ [
356 Ŝ→ [
356a States
357 Social Security Administration death master file for determining that an individual has
358 reportedly died.
358a Ŝ→ (b) "Special administrator" means the same as that term is defined in Section 75-1-201.
358b ←Ŝ
359 (2) With respect to a life or endowment insurance policy or annuity contract for which
360 an amount is owed on proof of death, but which has not matured by proof of death of the
361 insured or annuitant, the company is deemed to have knowledge of the death of an insured or
362 annuitant when:
363 (a) the company receives a death certificate or court order determining that the insured
364 or annuitant has died;
365 (b) due diligence, performed as required under Section 31A-22-1903, to maintain
366 contact with the insured or annuitant to determine whether the insured or annuitant has died
367 validates the death of the insured or annuitant;
368 (c) the company conducts a comparison for any purpose between a death master file
369 and the names of some of the company's insureds or annuitants and finds a match that provides
370 notice that the insured or annuitant has died, and the company validates the death; or
371 (d) the company:
372 (i) receives notice of the death of the insured or annuitant from Ŝ→ [
372a administrator,
373 beneficiary, policy owner, relative of the insured, or trustee or from a personal representative,
374 executor, or other legal representative of the insured's or annuitant's estate; and
375 (ii) validates the death of the insured or annuitant.
376 (3) A death master file match under Subsection (2)(c) occurs if the criteria for an exact
377 or partial match are satisfied as provided by:
378 (a) a law of this state other than this chapter, including Section 31A-22-1903; or
379 (b) a rule or policy adopted by the Insurance Department.
380 (4) A death master file match does not constitute proof of death for the purpose of a
381 beneficiary, annuitant, or owner of an insurance policy or annuitant contract submitting a claim
382 to an insurance company.
383 (5) The death master file match or validation of the insured's or annuitant's death does
384 not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to
385 make a claim to receive proceeds under the terms of the policy or contract.
386 (6) If a provision in Section 31A-22-1903 does not establish a time for validation of a
387 death of an insured or annuitant, the insurance company shall make a good faith effort using
388 other available records and information, no later than 90 days after the insurance company has
389 notice of the death, to:
390 (a) validate the death; and
391 (b) document the effort taken.
392 (7) This section does not affect the determination of the extent to which an insurance
393 company, before May 14, 2019:
394 (a) had knowledge of the death of an insured or annuitant; or
395 (b) was required to conduct a death master file comparison to determine whether
396 amounts owed by the company on a life or endowment insurance policy or annuity contract
397 were presumed or abandoned.