31A-22-428 - Interest payable on life insurance proceeds. - Utah Statutes

31A-22-428. Interest payable on life insurance proceeds.
(1) For a life insurance policy delivered or issued for delivery in this state on or afterMay 5, 2008, the insurer shall pay interest on the death proceeds payable upon the death of theinsured.
(2) (a) Except as provided in Subsection (4), for the period beginning on the date ofdeath and ending the day before the day described in Subsection (3)(b), interest under Subsection(1) shall accrue at a rate no less than:
(i) the rate applicable to policy funds left on deposit; or
(ii) if there is no rate described in Subsection (2)(a)(i), at the Two Year TreasuryConstant Maturity Rate as published by the Federal Reserve.
(b) The rate described in Subsection (2)(a) is the rate in effect on the day on which thedeath occurs.
(c) Interest is payable until the day on which the claim is paid.
(3) (a) Unless the claim is paid and except as provided in Subsection (4), beginning onthe day described in Subsection (3)(b) and ending the day on which the claim is paid, interestshall accrue at the rate in Subsection (2) plus additional interest at the rate of 10% annually.
(b) Interest accrues under Subsection (3)(a) beginning with the day that is 31 days fromthe latest of:
(i) the day on which the insurer receives proof of death;
(ii) the day on which the insurer receives sufficient information to determine:
(A) liability;
(B) the extent of the liability; and
(C) the appropriate payee legally entitled to the proceeds; and
(iii) the day on which:
(A) legal impediments to payment of proceeds that depend on the action of parties otherthan the insurer are resolved; and
(B) the insurer receives sufficient evidence of the resolution of the legal impedimentsdescribed in Subsection (3)(b)(iii)(A).
(4) A court of competent jurisdiction may require payment of interest from the date ofdeath to the day on which a claim is paid at a rate equal to the sum of:
(a) the rate specified in Subsection (2); and
(b) the legal rate identified in Subsection 15-1-1(2).

Enacted by Chapter 345, 2008 General Session