BILL REQ. #:  S-4051.1 

Read first time 01/15/08.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to the payment of interest upon failure to pay death benefits that are payable under the terms of a group life insurance policy; and adding a new section to chapter 48.24 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 48.24 RCW to read as follows:
     An insurer shall pay interest on death benefits payable under the terms of a group life insurance policy insuring the life of any person who was a resident of this state at the time of death.
     (1) The interest accrues commencing on the date of death at the rate then paid by the insurer on other withdrawable policy proceeds left with the company, but not less than eight percent.
     (2) Benefits payable that have not been tendered to the beneficiary within ninety days of the receipt of proof of death accrue interest, commencing on the ninety-first day, at the rate under subsection (1) of this section plus three percent.