Use of Retained Asset Accounts
Customize your policy alerts
Sign up for Nebraska Department of Insurance Policy IGD - A 1 alerts
Get alerted when Policy IGD - A 1 changes without checking for updates manually.
Monitor payer policy activity
Guidance establishing disclosure standards for insurers that pay life insurance benefits via retained asset accounts and the information required to be provided to beneficiaries.
No material clinical or coverage changes in this revision.
Retained Asset Account Disclosure and Contract Criteria
Retained Asset Account Disclosure and Contract Criteria
Insurer obligations when offering or using retained asset accounts:
ALL of the following
- Provide the beneficiary, at the time a claim is made, with written information describing the settlement options available under the policy or how to obtain specific details relevant to the options.
- If the insurer settles benefits through a retained asset account, provide the beneficiary with a supplemental contract that clearly discloses the rights of the beneficiary and obligations of the insurer under the supplemental contract.
ALL of the following
- Payment of the full benefit amount is accomplished by delivery of the 'draft book'/'checkbook'.
- One draft or check may be written to access the entire amount, including interest, of the retained asset account at any time.
- Whether other available settlement options are preserved until the entire balance is withdrawn or the balance drops below the insurer's minimum balance requirements.
- A statement identifying the account as either a checking or draft account and an explanation of how the account works.
- Information about the account services provided and contact information where the beneficiary may request and obtain more details about such services.
- A description of fees charged, if applicable.
- The frequency of statements showing the current account balance, the interest credited, drafts/checks written, and any other account activity.
- The minimum interest rate to be credited to the account and how the actual interest rate will be determined.
- The interest earned on the account may be taxable.
- Retained asset account funds held by insurance companies are not guaranteed by the Federal Deposit Insurance Corporation (FDIC).
- A description of the insurer's policy regarding retained asset accounts that may become inactive.
Actions Required at Time of Claim and When Settling Benefits
Provide written explanation of settlement options at time of claim
The insurer must provide the beneficiary, at the time a claim is made, with written information describing the settlement options available under the policy or how to obtain specific details relevant to the options.
Provide supplemental contract when settling via retained asset account
If the insurer settles benefits through a retained asset account, the insurer must provide the beneficiary with a supplemental contract that clearly discloses the rights of the beneficiary and obligations of the insurer under the supplemental contract.
Key Definitions
OpenPayer is powered by Trek Health's payer performance platform. Trek continuously ingests, validates, and normalizes Transparency in Coverage data alongside payer policies and other commercial payer data to create a structured payer intelligence foundation. OpenPayer uses this foundation to deliver personalized search results, dynamically generated policy pages, and tailored policy monitoring based on each user's payers, specialties, billing codes, and areas of interest. The same intelligence powers broader payer performance workflows, including reimbursement benchmarking, contract evaluation, payer negotiations, and financial decision-making.