SER John D. Perdue v. Nationwide Life Insurance Co., 777 S.E.2d 11

The West Virginia Uniform Unclaimed Property Act designates the State Treasurer as administrator to take custody of abandoned property, including life insurance proceeds, when the apparent owner’s last known address is in West Virginia.
The Treasurer filed sixty-nine complaints against insurers alleging failure to report and turn over presumptively abandoned life insurance proceeds under the Act, aiming for audits, penalties, and injunctive relief.
The circuit court dismissed sixty-three complaints with prejudice, holding that the insurers’ duties are defined by contract and the Insurance Code, not by the Act.
The Treasurer argued the Act’s plain language and its Moore-derived history require insurers to report and pay abandoned proceeds without waiting for a claimant under the policy.
The Court of Appeals reverses, holding that section 2(e) of the Act clearly creates an insurer obligation to account for and pay proceeds upon death or attainment of the limiting age, separate from contract-based claim requirements.
On remand, the circuit court may conduct discovery and determine whether insurers acted in good faith and in compliance with the Act, including potential examinations of insurer records.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether §36-8-2(e) makes insurers’ duties independent of claim filing.	TreState treasurer: §2(e) codifies Moore and requires reporting regardless of claims.	Insurers: obligations arise from contractual claim processes and pari materia with the Insurance Code.	§36-8-2(e) sets independent duties to report/pay, not contingent on claims.
Whether the circuit court erred by construing the Act in pari materia with the Insurance Code.	Statute unambiguous; pari materia analysis erred.	Look to Insurance Code for policy-based obligations.	Statute not ambiguous; pari materia do not apply; Act stands on its own.
Whether the DMF or other data sources impose a duty to search for deaths.	Insurers should search DMF to detect deaths and trigger payments.	No specific duty to search DMF; obligation is to account and transfer as prescribed by the Act.	Act imposes no general duty to search DMF; insurers may choose reasonable methods.
Whether discovery and an audit should proceed on remand.	Requests full discovery to establish noncompliance.	Discovery to be tailored; prior dismissal reversible with later findings.	Remand with discovery allowed to determine compliance and willfulness.
Whether penalties, interest, and fees should be considered if noncompliance is found.	Penalties and interest under the Act should apply for noncompliance.		Obligations to consider penalties are preserved; findings required.

Connecticut Mutual Life Ins. Co. v. Moore, 333 U.S. 541 (U.S. 1948) (abandoned property conservator concept; state may escheat without contract-based claims)
Davis Mem’l Hosp. v. W. Va. State Tax Comm’n, 222 W.Va. 677 (W. Va. 2008) (interpretation of in pari materia; enlargement of ‘includes’ in statutes)
State ex rel. Morrisey v. W. Va. Office of Disciplinary Counsel, 234 W.Va. 238 (W. Va. 2014) (statutory construction; relation of related statutes when language clear)
Cmty. Antenna Serv., Inc. v. Charter Comm’ns VI, LLC, 227 W.Va. 595 (W. Va. 2011) (principle of construing related statutes in pari materia when ambiguity exists)
Thrivent Fin. for Lutherans v. Dep’t of Fin. Servs., 145 So.3d 178 (Fla. Dist. Ct. App. 2014) (DMF duties; challenge to insurer’s search obligation under unclaimed property law)