41-1337. LIFE INSURANCE — PAYMENT OF INTEREST ON BENEFITS. (1) An insurer shall pay the proceeds of any benefits under a policy of life insurance not more than thirty (30) days after the insurer has received satisfactory proof of death of the insured. Except as provided in subsection (2) of this section, if the proceeds are not paid within the thirty (30) day period, the insurer shall also pay interest on the proceeds from the date of death of the insured to the date when the proceeds are paid.
(2) If satisfactory proof of death is received more than one hundred eighty (180) days after the death of the insured and the death benefits are not paid within thirty (30) days after satisfactory proof of death has been received by the insurer, interest shall accrue from the date on which satisfactory proof was received by the insurer to the date when proceeds are paid.
(3) The rate of interest to be paid by the insurer under subsections (1) and (2) of this section shall be the current rate of interest on death proceeds on deposit with the insurer; provided however, that if the insurer holds its deposits in a noninterest-bearing account or in an account bearing less than two percent (2%) interest per annum, the rate of interest to be paid shall be the one (1) month United States government securities treasury constant maturity rate as disclosed in the federal reserve statistical release publication H.15, selected interest rates, as of the first of the month preceding the date of death, plus two (2) percentage points.
(4) A payment of interest shall not be required under this section in any case in which the beneficiary elects to receive the proceeds under the policy by any means other than a lump sum payment.
History:
[(41-1337) 41-1336, added 2003, ch. 85, sec. 1, p. 261; am. and redesig. 2004, ch. 318, sec. 11, p. 899.]
Structure Idaho Code
Chapter 13 - TRADE PRACTICES AND FRAUDS
Section 41-1301 - PURPOSES OF TRADE PRACTICES LAW.
Section 41-1302 - UNFAIR METHODS OF COMPETITION AND DECEPTIVE ACT PROHIBITED.
Section 41-1303 - MISREPRESENTATION OR FALSE ADVERTISING OF POLICIES.
Section 41-1304 - FALSE INFORMATION AND ADVERTISING WITH RESPECT TO INSURANCE BUSINESS.
Section 41-1305 - “TWISTING” PROHIBITED.
Section 41-1306 - FALSE FINANCIAL STATEMENTS.
Section 41-1309 - BOYCOTT, COERCION AND INTIMIDATION.
Section 41-1310 - PERSON FINANCING PURCHASE OF PROPERTY NOT TO FAVOR INSURER OR AGENT.
Section 41-1311 - SELLER OF PROPERTY NOT TO FAVOR INSURER OR AGENT.
Section 41-1312 - RIGHTS WITH RESPECT TO INSURANCE ON PROPERTY SOLD OR PURCHASED.
Section 41-1313 - UNFAIR DISCRIMINATION — LIFE INSURANCE, ANNUITIES, AND DISABILITY INSURANCE.
Section 41-1314 - REBATES — ILLEGAL INDUCEMENTS.
Section 41-1315A - DISCOUNTS TO EMPLOYEES.
Section 41-1316 - STOCK OPERATIONS AND ADVISORY BOARD CONTRACTS.
Section 41-1317 - FICTITIOUS GROUPS.
Section 41-1318 - INTERLOCKING OWNERSHIP OR MANAGEMENT.
Section 41-1321 - PROCEDURES AS TO UNDEFINED PRACTICES.
Section 41-1323 - ILLEGAL DEALING IN PREMIUMS — EXCESS CHARGES FOR INSURANCE.
Section 41-1324 - REPORT OF EXACT CONSIDERATION TO INSURER.
Section 41-1325 - BORROWING MONEY FROM CLIENTS.
Section 41-1327 - VIOLATIONS — PENALTY.
Section 41-1328 - PAYMENT OF CLAIMS BY INSURERS.
Section 41-1328A - REPAIR OF MOTOR VEHICLES.
Section 41-1328B - DEFINITIONS.
Section 41-1328C - IDENTIFICATION OF PARTS.
Section 41-1328D - USE OF PARTS — DISCLOSURE.
Section 41-1329 - UNFAIR CLAIM SETTLEMENT PRACTICES.
Section 41-1329A - UNFAIR CLAIMS SETTLEMENT PRACTICES — PENALTY.
Section 41-1330 - FAILURE TO MAINTAIN COMPLAINT HANDLING PROCEDURES.
Section 41-1331 - CLAIMS FORMS STATEMENT.
Section 41-1332 - RETURN OF UNEARNED PREMIUM FOR DISABILITY POLICIES.
Section 41-1333 - REFUND OF UNEARNED HEALTH INSURANCE PREMIUMS.
Section 41-1334 - DISCLOSURE OF NONPUBLIC PERSONAL INFORMATION.
Section 41-1335 - RELEASE OF PATIENT IDENTIFIABLE PRESCRIPTION INFORMATION PROHIBITED — EXCEPTIONS.
Section 41-1336 - REQUIREMENTS FOR COMPLIANCE.
Section 41-1337 - LIFE INSURANCE — PAYMENT OF INTEREST ON BENEFITS.