SB324: SB324 Life Insurance; certain protections for life insurance policyholders and beneficiaries; provide

26 LC 46 1486S (SCS) Senate Bill 324 By: Senators Harbin of the 16th, Williams of the 25th, Albers of the 56th, Gooch of the 51st, Robertson of the 29th and others AS PASSED SENATE A BILL TO BE ENTITLED AN ACT To amend Chapter 25 of Title 33 of the Official Code of Georgia Annotated, relating to life1 insurance, so as to provide for certain protections for life insurance policyholders; to provide2 for a short title; to provide definitions; to provide for insur ers to conduct policy locator3 searches on a quarterly basis; to provide for updated records; to provide for disclosure of4 certain information; to provide for the right to original agents of record; to provide for the5 right to access policy information; to provide for an authorize d recipient; to provide for a6 standardized form authorizing access to certain information; to provide for the right to an7 annual policy status report; to provide for the right to beneficiary protection; to provide for8 annual reporting; to provide for the Department of Insurance to publish on its website a9 statement on the rights of policyholders and a standardized form for authorizing a recipient10 to have access to certain policy information; to provide for su ch statement and form to be11 sent to certain insurers; to provide for rules and regulations; to provide for related matters;12 to provide for an effective date; to repeal conflicting laws; and for other purposes.13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14 S. B. 324 - 1 - 26 LC 46 1486S (SCS) SECTION 1.15 Chapter 25 of Title 33 of the Official Code of Georgia Annotated, relating to life insurance,16 is amended by adding a new subsection to Code Section 33-25-14, relating to unclaimed life17 insurance benefits, purpose, definitions, and insurer conduct, to read as follows:18 "(d.1) An insurer shall conduct a search of the National Associ ation of Insurance19 Commissioners' policy locator system on at least a quarterly ba sis to identify potential20 matches to policies, persons, and designated beneficiaries. If an insurer finds a match, then21 the insurer shall within 30 days confirm the accuracy of the match, contact the person, the22 designated beneficiary, or an authorized representative, and update the insurer's records. 23 To the extent permitted by law, an insurer may disclose minimum necessary personal24 information about a person or a designated beneficiary to a per son who the insurer25 reasonably believes may be able to assist the insurer in locating the designated beneficiary26 or a person otherwise entitled to payment of the claims proceeds."27 SECTION 2.28 Said chapter is further amended by adding a new Code section to read as follows:29 "33-25-16.30 (a) This Code section shall be known and may be cited as the 'Georgia Policyholder Bill31 of Rights.'32 (b) As used in this Code section, the term:33 (1) 'Insurer' means an insurance company that issued or currently insures a policy.34 (2) 'Policy' means a life insurance policy owned by an individual who is a resident of this35 state regardless of whether the policy was issued, delivered, o r renewed in this state. 36 Such term includes a contract of life insurance, a life benefit certificate issued by a37 fraternal benefit society, a life annuity, or an annuity contract.38 (3) 'Policyholder' means the owner of a policy.39 S. B. 324 - 2 - 26 LC 46 1486S (SCS) (c) A policyholder has the right to retain his or her original agent of record for a policy. 40 If an insurer sells or transfers the policy to another insurer, such insurer shall continue to41 provide annual reports to the original agent of record.42 (d) A policyholder has the right to receive important insuranc e policy documents. Such43 documents include, but are not limited to, company illustrations outlining projected values;44 status reports detailing payments, benefits, and conditions; an d reprojections providing45 updated future value estimates. A policyholder may authorize a recipient to have access46 to such documents by submitting a standardized form developed by the department. Such47 form shall include the following:48 (1) The policyholder's full legal name, date of birth, and the last four digits of the49 policyholder's social security number;50 (2) The authorized recipient's name and contact information;51 (3) The information authorized to be shared;52 (4) The express limitation that the authorization does not grant the authorized recipient53 the authority to make policy changes, change beneficiaries, or assign, surrender, borrow,54 or transfer any policy;55 (5) The effective date and the duration of effectiveness, not to exceed 12 months; and56 (6) The notarized signature of the policyholder.57 (e) A policyholder has the right to receive an annual report detailing the status of his or her58 policy. An insurer shall provide such annual report, even if the policy is fully paid.59 (f) A policyholder has the right to beneficiary protection. No later than January 1, 2027,60 and annually thereafter, every insurer shall report to the Comm issioner the results of61 searches conducted under Code Section 33-25-14.62 (g) The Commissioner shall, as soon as practicable, but no lat er than January 1, 2027,63 prepare a statement that sets forth in simple and nontechnical terms the rights of64 policyholders as set forth in this Code section and the authorization form provided for in65 subsection (d) of this Code section. Such statement and form s hall be published on the66 S. B. 324 - 3 - 26 LC 46 1486S (SCS) department website and shall be sent to all insurers authorized to transact life insurance in67 this state.68 (h) The Commissioner shall promulgate rules and regulations necessary to implement the69 provisions of this Code section."70 SECTION 3.71 This Act shall become effective upon its approval by the Governor or upon its becoming law72 without such approval.73 SECTION 4.74 All laws and parts of laws in conflict with this Act are repealed. 75 S. B. 324 - 4 -