Bill Text: PA SB130 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for provision of decedent's life insurance information to a licensed funeral director; and imposing a duty on the Insurance Department.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2011-01-18 - Referred to BANKING AND INSURANCE [SB130 Detail]

Download: Pennsylvania-2011-SB130-Introduced.html

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PRINTER'S NO. 143
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 130 Session of2011
INTRODUCED BY WILLIAMS, TARTAGLIONE AND COSTA, JANUARY 18, 2011
REFERRED TO BANKING AND INSURANCE, JANUARY 18, 2011
AN ACT
Amending Title 20 (Decedents, Estates and Fiduciaries) of the
Pennsylvania Consolidated Statutes, providing for provision
of decedent's life insurance information to a licensed
funeral director; and imposing a duty on the Insurance
Department.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 20 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 3101.1. Provision of decedent's life insurance information.
(a) Right to request.--A licensed funeral director or an
employee of a licensed funeral director may request information
from an insurer regarding a decedent's contract for life
insurance by providing the insurer written authorization from
the person with legal authority to dispose of the body of the
decedent under section 305 (relating to right to dispose of a
decedent's remains).
(b) Duty of insurer.--As soon as possible after receipt of
the request, the insurer shall inform the person authorized to
make an inquiry under subsection (a) of the following:
(1) The existence of a contract insuring the life of the
decedent.
(2) Beneficiaries on record under a life insurance
contract insuring the life of the decedent.
(3) The amount of liens or loans outstanding on the
policy.
(4) The amount of benefits payable to the beneficiaries.
(5) Whether the policy has been reinstated within the 24
months immediately preceding the inquiry.
The insurer shall provide a claim form to a person or assignee
making the request.
(c) Response from insurer.--If a person making a written
request under subsection (a) has provided the information
required and does not receive a timely response from the
insurer, he may refer the request to the Insurance Department
which shall treat the referral as a consumer complaint. The
referral shall include all the information provided to the
insurer under subsection (a) as well as copies of the
communications and information received from the insurer
regarding the request for information.
(d) Beneficiary of life insurance contract.--If the
beneficiary of record under a contract for life insurance for
which information was requested under subsection (a) is not the
decedent's personal representative, heir or devisee, then a
person authorized to request information under subsection (a)
shall make reasonable efforts to locate the beneficiary within
100 hours of receiving information from the insurer regarding a
life insurance contract and shall provide to the beneficiaries
the documents and information obtained from the insurer.
(e) Duty to inform.--The person obtaining the information
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under subsection (a) shall inform the beneficiaries in writing
and bold print that:
THE BENEFICIARY OF A LIFE INSURANCE CONTRACT HAS NO LEGAL
DUTY OR OBLIGATION TO SPEND THE PROCEEDS ON THE FUNERAL,
DEBTS OR OBLIGATIONS OF THE DECEASED.
This duty shall be performed before discussing with the
beneficiaries financial arrangements for burial of the deceased.
(f) False request for information.--A licensed funeral
director or an employee of a licensed funeral director who makes
a false request for information under this section or fails to
inform under subsection (e) shall be in violation of 18 Pa.C.S.
§ 4107 (relating to deceptive or fraudulent business practices)
and shall be subject to license revocation under section 11 of
the act of January 14, 1952 (1951 P.L.1898, No.522), known as
the Funeral Director Law.
(g) Report.--The Insurance Department shall report to the
chair and minority chair of the Banking and Insurance Committee
of the Senate and the chair and minority chair of the Insurance
Committee of the House of Representatives by March 1, 2011, the
following:
(1) The number of referrals under subsection (c).
(2) The identity of the insurers whose refusal or delay
resulted in the referrals.
(3) The reasons the insurers were unable to respond to
the inquiries.
(4) Recommendations for administrative, legislative or
regulatory changes needed to enhance the ability of persons
arranging for funeral services to obtain timely access to
information about a life insurance contract which was
assented to by a decedent.
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Section 2. This act shall take effect in 60 days.
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