Kentucky has enacted legislation requiring life insurance companies to perform a regular comparison between current life insurance policies and retained asset accounts against the Social Security Administration's Death Master File to identify matches with insureds. The legislation is a response to litigation commenced (and settled) by California, Florida, Massachusetts and a number of other states against life insurance companies who had been found to have not been properly escheating unclaimed life insurance proceeds.
With the enactment of H.B. 462, North Carolina now bars the use of third-party auditors that are compensated by the Department of Revenue, Treasurer and local governments on a contingent fee basis. This new statute is effective October 1, 2012 and should include unclaimed property auditors. The state may not renew contingent fee contracts or enter into new contingent fee audit contracts after October 1, 2012.