Title 3. Courts of General Jurisdiction -- Jurisdiction/special Causes of Action — Subtitle 1. Absent Persons

In this subtitle the following terms have the meanings indicated.

“Absentee” means a person who has disappeared.

“Court” means a court having jurisdiction as provided in § 13-105(b) of the Estates and Trusts Article.

A provision in any policy of life or accident insurance, or in the charter or bylaws of any mutual or fraternal insurance association concerning the effect to be given to evidence of death or absence, is invalid if the policy was executed or the provision adopted after May 31, 1941.

If the policy, charter, or bylaws, executed or adopted after May 31, 1941, contains a provision which requires a beneficiary to bring suit upon a claim of death within one year or other period after the death of the insured and the fact of absence of the insured is relied upon by the beneficiary as evidence of the death, notwithstanding the provisions in the policy, charter, or bylaws, the action may be filed within the period of limitations for filing an action for breach of contract.

For purposes of this section, the period of limitations runs from the date the beneficiary gives written notice of the absence to the insurer, or if notice is not given, from the date the beneficiary last heard about the insured. The notice shall be given within one year from the date the beneficiary last heard about the absent insured.

Upon application, the court may direct the guardian to make search for the absentee in any manner the court considers advisable, including one or more of the following methods:

The expenses of the search shall be taxed as costs and paid out of the property of the absentee.

If the court declares that the person is dead, it may terminate the guardianship proceedings pursuant to § 13-221 of the Estates and Trusts Article.

Unless the court has terminated the guardianship proceeding under subsection (a) of this section, the court, after a lapse of five years from the appointment of a guardian or a lapse of one year when the person has been missing for more than 20 years, may enter a decree declaring that all interest of the absentee in his property has ceased, provided the absentee has not appeared in the meantime. The court then shall terminate the guardianship proceeding as if the absentee had died.

If the guardianship is terminated under § 3-106(b) of this subtitle, the court may direct the payment to the beneficiaries of any sum due and unpaid under any policy of insurance on the life of the absentee, if the claim is uncontested by the insurer.

If the guardianship is terminated under § 3-106(b) of this subtitle and an insurer contests a claim under subsection (a) of this section, the court has jurisdiction of the matter and shall determine, with the aid of a jury if one is called for, the issue of death of the absentee and any other issue arising under the policy.

In any proceeding under this section, if the absentee is not found to be dead and the policy provides for a surrender value, the beneficiary may request the guardian to demand the payment of surrender value. The guardian’s receipt for the payment is a release to the insurer of all claims under the policy. The guardian shall pay to the beneficiary (or to the absentee’s estate, if the beneficiary has not survived the absentee) the sum so received, less the amount allowed by the court as costs of the proceedings under this section.

If the survival of a named beneficiary is not established, the provisions of this subtitle apply as if the proceeds of insurance were a part of the estate of the absentee.

After termination of the guardianship under § 3-106 of this subtitle, the court shall distribute the remaining property in accordance with Title 13 of the Estates and Trusts Article, and this subtitle.

The order of distribution shall be final and binding upon any person, including the absentee.