– Legislation that will allow for faster disbursement of life insurance policies to better assist families of the deceased was signed by the governor on June 28, said Rep. Marguerite Quinn (R-Bucks), author of the proposal.
“Too often, people find out about life insurance proceeds owed to them years after a loved one has passed, when the money has lapsed into the Treasury Department’s Unclaimed Property Bureau,” said Quinn, vice chairman of the House Insurance Committee. “When family members are not aware of the existence of a policy, the money often comes too late to help them cover expensive burial costs. My goal is to bypass those years, and to get the money into the hands of the beneficiaries as soon as possible.”
Under House Bill 152
, now Act 48 of 2018
, the loved ones or a legal representative of a deceased individual will be able to query the Pennsylvania Department of Insurance to see if a life insurance policy for that individual was in place.
All companies with life insurance policies in Pennsylvania will be required to participate in the life policy locator service and respond to search requests for life insurance policies or annuities. According to the Insurance Department, a resident of the 143rd District was the beneficiary of a successful search with a considerable, six-figure policy.
The legislation was also amended to include House Bill 2434
, which will update the Annuity Suitability Law to be consistent with the most recent National Association of Insurance Commissioners (NAIC) model law. The goal of this update is to provide better education to insurance producers who also sell annuities. As a result, better educated producers, agents and sellers can better match annuity products to meet their clients’ needs.
The law will become effective 180 days after it is signed.
Representative Marguerite Quinn
Pennsylvania House of Representatives
Media Contact: Jennifer Keaton