(1) Any insurance company authorized to do business in this state shall pay interest on any proceeds due on a life insurance policy if:
(a) The insured was a resident of this state on the date of death;
(b) The date of death was on or after June 6, 1991;
(c) The beneficiary elects in writing to receive the proceeds in a lump-sum payment; and
(d) The proceeds are not paid to the beneficiary within thirty days of receipt of proof of death of the insured by the insurance company.
(2) Interest shall accrue from the date of receipt of proof of death to the date of payment at the rate calculated pursuant to section 45-103 in effect on January 1 of the calendar year in which occurs the date of receipt of proof of death. For purposes of this section, date of payment shall include the date of the postmark stamped on an envelope, properly addressed and postage prepaid, containing the payment.
(3) If an action is commenced to recover the proceeds, this section shall not require the payment of interest for any period of time for which interest is awarded pursuant to sections 45-103 to 45-103.04 .
(4) A violation of this section shall be an unfair claims settlement practice subject to the Unfair Insurance Claims Settlement Practices Act.
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