(1) A member must designate an individual as a beneficiary in a manner prescribed by the department.

(2) Upon proof of a member's death, if the deceased member's account has a positive account balance, the member's designated beneficiary is entitled to use the account for qualified health care expenses.

(3) If a deceased member's account has a positive account balance and the member failed to designate a beneficiary or has no surviving designated beneficiary, the account balance will be available to pay qualified health care benefits incurred by the person(s) certified to be the beneficiary by the executor or administrator of the member's estate.

(4) In the event any member's account shall have been unclaimed for a period of at least 35 months since the whereabouts or continued existence of the person entitled to the account was last known to the administrator, the member's account shall become the property of the Montana VEBA HRA.