How must unclaimed checks be handled?

Handling unclaimed checks requires adherence to specific legal frameworks designed to manage abandoned property, and in many jurisdictions, this includes escheatment laws. Maryland's escheatment law dictates the procedures that must be followed when checks are unclaimed for a certain period. This law outlines how unclaimed property should be reported and ultimately transferred to the state after being abandoned by its owner.

It is vital for title insurance producers and other financial entities to comply with state-specific escheatment laws to avoid legal ramifications and ensure proper financial management of unclaimed funds. These laws aim to protect consumers by allowing them to reclaim uncashed or unclaimed money, ensuring accountability and transparency in financial dealings.

In contrast, while the insurance contract and insurance application may contain provisions related to payment and transactions, they do not govern the broader legal implications of unclaimed property and the processes required by state law. As such, the escheatment law is the governing framework for handling unclaimed checks in this context.