Gov. Tom Wolf recently signed into law a bill that requires all companies with life insurance policies in Pennsylvania to participate in a life policy locator service and respond to search requests for life insurance policies or annuities.
Under Act 48 of 2018, the families or legal representatives of deceased individuals will be able to query the Pennsylvania Department of Insurance to check whether a life insurance policy for that individual was in place.
The new law will enable faster disbursement of life insurance policies to better assist families, Rep. Marguerite Quinn (R-Bucks), author of the proposal, said.
“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,” Quinn, vice chairman of the House Insurance Committee said. “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.”
The legislation was amended to include House Bill 2434, which updates the Annuity Suitability Law to be consistent with the most recent National Association of Insurance Commissioners (NAIC) model law to provide improved education to insurance producers who also sell annuities.
The law will go into effect 180 days after its signature.