AZ Circular Letter 1989-02: Unclaimed Property

STATE OF ARIZONA

DEPARTMENT OF INSURANCE

JANE DEE HULL

2910 NORTH 44th STREET, SUITE 210

CHARLES R. COHEN

Governor

PHOENIX, ARIZONA 85018-7256

Director of Insurance

602/912-8456 (phone) 602/912-8452 (fax)

Former Director Susan Gallinger issued the following Circular Letter on October 3, 1989:

Circular Letter 89-2

UNCLAIMED PROPERTY

October 3, 1989

It has come to my attention that some insurers and licensees may not be

complying with the Arizona laws regarding the disposition of unclaimed property. The

purpose of this circular letter is to remind insurers and licensees of these laws, and to

advise that the Department of Insurance is monitoring insurers’ and licensees’

compliance with these laws as part of its examinations and investigations.

The Uniform Unclaimed Property Act (1981 Act) has been adopted in a number

of states, including Arizona. The Act, which may be found at Arizona Revised Statutes

§ 44-301 et seq., provides that intangible property that remains unclaimed by the

apparent owner for more than five years after it becomes payable or distributable is

generally presumed abandoned. Intangible property is defined in the Act to include

monies, checks, drafts, deposits, interest, dividends, amounts due and payable under

the terms of insurance policies and amounts distributable from trusts or other custodial

funds.

Generally, abandoned intangible property is subject to the custody of the State if

the last known address of the apparent owner or other person entitled to the property is

located in Arizona. Persons or entities holding such abandoned intangible property are

required under the Act to submit a verified report to the Arizona Department of Revenue

regarding the property and to pay or deliver the property to the Department of Revenue

prior to May 1st each year along with the report

the last known address of the apparent owner or other person entitled to the property is

located in Arizona. Persons or entities holding such abandoned intangible property are

required under the Act to submit a verified report to the Arizona Department of Revenue

regarding the property and to pay or deliver the property to the Department of Revenue

prior to May 1st each year along with the report.

The Department of Revenue will publish a “notice of names of persons appearing

to be owners of unclaimed property” in a newspaper of general circulation, and will mail

a notice to the apparent owner if the Department of Revenue is able to ascertain a

current address.

Upon the payment or delivery of the property to the Department of Revenue, the

State of Arizona assumes custody and responsibility for the safekeeping of the property.

Circular Letter 89-2

October 3, 1989

Page 2

Any person who pays or delivers property to the Department of Revenue in good faith is

relieved of all liability to the extent of the value of the property paid or delivered for any

claim then existing or which may thereafter arise or be made in respect to the property.

Any person claiming an interest in any property paid or delivered to the Department of

Revenue may file a verified claim with the Department of Revenue. Property that

remains unclaimed shall be sold by the Department of Revenue at a public sale, and the

proceeds shall be deposited in the State general fund.

For further information, including reporting dates and forms, please contact the

Unclaimed Property Unit, Arizona Department of Revenue, 1600 West Monroe,

Phoenix, Arizona, 85007.

Susan Gallinger

DIRECTOR OF INSURANCE