Recission of Bulleting 98-3 - Interest-bearing Accounts as a Settlement Option

[LOGO] Glenn Pomeroy Commissioner of Insurance DEPARTMENT OF INSURANCE STATE OF NORTH DAKOTA # BULLETIN 99-2 TO: All Life Insurance Carriers Writing Business in North Dakota FROM: Glenn Pomeroy, Commissioner Glenn Pomeroy DATE: February 18, 1999 SUBJECT: Recission of Bulletin 98-3 - Interest-Bearing Accounts as a Settlement Option The Department issued Bulletin 98-3 on September 28, 1998, which prohibited the placement of death proceeds into interest-bearing accounts or retained asset accounts (RAAs) unless the consumer affirmatively chose to place the settlement proceeds into such an account. Bulletin 98-3 also required that an affirmative choice be given to the claimant and that the affirmative choice must be included in the claimant statement form which must offer the consumer a choice of all settlement options in the contract. The settlement options must include a lump sum settlement. It has come to the Department's attention that some policy forms may have been approved containing a provision for RAAs which is inconsistent with Bulletin 98-3 and that such contracts may have been placed in use. As such, the Department is concerned that Bulletin 98-3 may interfere with existing contracts and intends to research this issue further. Therefore, in response to this new information and pending further review by the Department, Bulletin 98-3 is rescinded effective the date of this bulletin. GP/njb 600 EAST BOULEVARD DEPT 401 • BISMARCK, ND 58505-0320 • (701) 328-2440 Consumer Hotline: 1-800-247-0560 Relay North Dakota 1-800-366-6888 (TTY)