Senate Insurance and Labor Committee, February 26, 2026

Transcript

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1. 0:15:13

   Labor on f- on, uh, at the, uh, 6:00 hour, and, uh, we will not, uh, be long here as we get everything pulled together. Um, I'm gonna ask, uh, Mr. Shawn Stills, uh, number six, I believe-

2. 0:15:27

   Something like that

3. 0:15:28

   ... if you would pray for us, and, uh, we would greatly appreciate it. Let me m- make one announcement real quickly before. Next Tuesday at 6:00, there's a joint Insurance and House and Senate meeting at Fogo de Chão. And so, uh, we are, that is on Tuesday at 6:00, and it is a joint together. We've never done it jointly, but that's what they're doing this time.

4. 0:15:54

   What do you mean joint?

5. 0:15:55

   What do you mean joint, Leon? Is this a marijuana bill? Not that. 420.

6. 0:16:00

   I knew you were gonna say that.

7. 0:16:01

   It's a 420 bill. Th- th- this, this is bringing together both the House and the Senate. Okay. It's probably the only time we will agree on a lot of things, but nevertheless, we're gonna, we're gonna make it happen. So I wanted to make that announcement before I forgot about it, just so you can- Tuesday the 3rd? That's, uh, Tuesday the 3rd, correct? Yeah. 6:00. 6:00. I'm doing that. Okay, just wanted to not forget that. Sh- Mr., Senator Still, would you pray for us, please, sir?

8. 0:16:30

   God, you have delivered a quorum, and we are so grateful. Uh, thank you for those that have, uh, stayed for the good people of Georgia. Thank you for those in attendance, and, uh, just pray that everybody gets home safe tonight and this weekend and back at work on Monday. In Your name we pray, amen.

9. 0:16:48

   Amen. We've got- Thank you for a quorum. Thank you for a quorum. We're grateful for those that are, all that are here. While we got, we, we're doing beyond that. I'm gonna do this. I'm gonna switch with Ms. Kay Kirkpatrick, and she's going to become the chair as I present a bill, a senator.

10. 0:17:08

    Senator Doctor Mangum.

11. 0:17:10

    Senator Doctor, Doctor- Senator Doctor Mangum ... Mangum, as far as I'm concerned.

12. 0:17:18

    Thank you, Mr. President.

13. 0:17:19

    Certainly, Howard. We appreciate you.

14. 0:17:21

    All right.

15. 0:17:29

    Is that number two, that mic?

16. 0:17:31

    Hello, test.

17. 0:17:32

    Yeah.

18. 0:17:32

    Yeah? Okay. Thank you.

19. 0:17:34

    Okay.

20. 0:17:34

    Well, thank y'all, and I appreciate all of y'all being here. And, uh, I know it's been a long day, and all that's there, and I'll walk through. We are on, uh, LC 52-1056S as the substitute on SB 324. Um, and our, and we presented this once. We've made some changes to it that really, uh, part of this came from, uh, Senator Walker, which I thought were extremely good, and I'll talk about those. And, um, just some cleanups that needed to be made, if you will.

21. 0:18:07

    If you'll take, um, I'm gonna take you to page two. Um, unclaimed property's interesting. The state has in unclaimed property, uh, uh, over three mi- uh, $3 billion in unclaimed property, and that's where life insurance policies go that they cannot find the beneficiary. Uh, in discussion with, um, leg council, uh, a- and this is under section, uh, line 17 is the code section is 33-25-14, is where currently we require the life insurance policy or companies to examine the Social Security death benefit list that they get every month.

22. 0:18:47

    It's published where people are dead. That tells them that they're dead, and they are then to try to make the attempt. The other part that it's used for, that people don't realize, is for annuities. If they're paying that person a life annuity, at the point of death, they turn that off. And so that's a part that also the death benefit des- list is used for. So under Georgia law, as it currently stands, the, the life insurance company is required to search the, the death list on a, on a r- regular basis and to try to seek to find the beneficiary of the policy.

23. 0:19:22

    The issue that's there is the beneficiary may or may not know there's a policy there. That's the real issue. And some of these in, if you looked at the last one we did, uh, I had a copy of a policy done in 1966. All it has is a name for the beneficiary, therefore, it's very hard to find. So what we've done, if you look at line 19, is we've added to the unclaimed property section the issue that an insurer shall conduct a search of the National Association of Insurance Commissioners policy locator system at least on a quarterly basis.

24. 0:19:55

    So the National Association, which is all these states are members of, put this together years ago, and they use that to fi- help people find the policies. There's just no law, there's no requirement of them to search it. It's a voluntary basis. So what this does, it takes the requirement that's required to search the death benefit list, but also to look at the locator. So if you're looking for a policy on a, on your family member or whoever it may be, they just have the same responsibility that they would there.

25. 0:20:28

    And if you looked at the article in the last time that we were here, uh, over $13 billion has been recovered using the policy locator just on a voluntary basis, if you will. So that was, um, a, a change that we made. On line 39, policyholder has been defined as the owner of the policy, and in a life insurance policy, you have multiple people. You have the insured, who is the person that's insured. You can have the owner, and that owner controls that policy. He controls the beneficiary and all that's there.

26. 0:21:00

    And we had this one, was broad, was very broad. It named the beneficiary, the, the owner and everybody, and we brought it down and, uh, limited it to the policy owner own- owner only, and, uh, that was Senator Walker's recommendation. I think he was, he was on target with what he was saying because the other parties do not have a, a, a contractual right to that. Under page three- Starting in line 40, um, a policyholder has the right to retain his or her original agent of record for a policy if the insured is, sells or transfers the policy to another insurer.

27. 0:21:38

    Such insurer shall continue to provide an annual report to the original agent of record. And I had it, an example I gave y'all of, of clients that I have from a- uh, 2011, and I g- they, once the company was sold, I got the first year, but the second year I did not get a copy of the report. And that just doesn't allow me to s- service the client or any agent to service the client when they can't have that type of information. The other part that we, uh, and we worked with the Department about this, and they seem to be fine with this.

28. 0:22:10

    If you look at line 46, um, a policyholder may authorize a recipient to have access to such documents by submitting a standardized form developed by the department, and this is the Department of Insurance, such as the form would include the policyholder's legal name, Social Security number, all the pertinent information. And in your file folder is kind of a sample of what we are thinking. Currently, we want the department to create the form, because rather than have every insurance company create their own form, this way the department has, um, directed it, and it just makes it a whole lot easier than every company having their own separate form.

29. 0:22:52

    And the insurance department seemed to be in agreement with that. And so this would just require them to set this up so that if a policyholder wanted, and if you look at the form itself, um, they would put their information at the top. They would-- The person would be given limited, um, abilities to ask for the values, things of that nature, projections on the policy. But in the middle, this authorization does not grant authority to make policy changes, changes in beneficiaries, assignments, surrender, borrow, or transfer the policy in any way.

30. 0:23:23

    So they're limited to what they can make from the cha- from a change standpoint. This opens where a person who did not know what they had could authorize their CPA, could authorize an attorney or another agent to gather information and data, and that's lines 47 through 57. And then, um, the last part is on page, uh, is, uh, line 58, is the policyholder has the right to receive an annual report detailing the status of his or her policy. An insurer shall provide such annual report even if the policy is fully paid.

31. 0:23:57

    And what you find is a lot of the older policies that are out there have paid up, and there's no generation because it's a paid-up policy, but then the person has no way really to know. And so what this would do, it re- would ask them to generate an annual statement so that someone would know what the value of that policy is. We've simplified it a great deal. I think that the, uh, commissioner creating the one form solves a multitude of problems, a multitude of issues, and it's simply that we can release information, much like a HIPAA is signed in the medical f- uh, medical or medical records releases are signed.

32. 0:24:35

    This just allows for the policies.

33. 0:24:38

    Thank you. We got a question here. Senator Still.

34. 0:24:41

    Thank you. Chair lady. Chairwoman. Chairperson. Chair doctor.

35. 0:24:49

    Your Highness.

36. 0:24:50

    Your Highness. Um, Chairman, how, how does this differ? This, this is a completely different process than, than what's being done now. How is this improving, uh, things for the, the process for, for folks looking for this? And is there gonna be any confusion, um, within the industry about all these changes? It seems like it's streamlining. I'm just making sure that it's, it's not gonna throw-

37. 0:25:16

    Right

38. 0:25:16

    ... people for a loop.

39. 0:25:18

    It puts a burden on the insurance companies to check the policy locator. That's a n- that's a newbie. That's the first part that's on 17 through 20. But that was, that system was created by the National Association of Insurance Commissioners across the country for the purposes of locating. What this does, this requires the companies to not only check the death benefit, but to check the locator as well. That is an additional step that the industry would have to adapt to.

40. 0:25:50

    I will tell you that most of the main, main companies today are using that and, and doing that. That's present by the $13 billion that, that, that has come through from that standpoint. That changes. The, um, form itself is really a, like a medical HIPAA form that where to get your medical records. It's to get the information on the policy. A- and let me kind of give you a real experience. Um, you know, I've got an 82-year-old client who, whose policies the daughters asked me to look at.

41. 0:26:25

    The person, the insured signed and gave me, um, information, but they really do not understand what we're doing or why we're doing it. We're just trying to make sure that the policy is there and it's going to pay for the purpose which it was purchased. And so what this does by the insurance commissioner putting this form together and authorizing it, what happens in an industry, this is a simple form that's put in together by the insurance commissioner, approved by him, and every company can accept this just for the informational purposes.

42. 0:26:58

    Can't make any changes, but we can get the information, so it really simplifies that for the individual. I have one I'm, I'm working on right now. I wrote the letter for the insured to send to the company. It had to be mailed. We mailed it. Now I got it back. This just simplifies that. It makes it easier for someone to be able to help a client know where they are on their policy.

43. 0:27:21

    Great. Thank you.

44. 0:27:22

    Okay.

45. 0:27:23

    Senator Hodges.

46. 0:27:25

    Thank you. Thank you, Madam Chair. Um, Mr. Chairman, uh, what, tell me what, what is the policy locator? What information is on that?

47. 0:27:36

    Name, date of birth, Social Security if they have it, last known address, uh, is, is in that. In fact, it was in the last one we had what they're required. And so what this locator does, they're looking ... Most of them are tied to Social Security numbers, uh, or dates of birth, but it's asking, that information is gathered, and then the companies would look at that data, and this is all downloaded from that standpoint. I mean, all the major carriers are, are doing it. It pick, this is gonna pick up some of the players that just have not looked at it, and, and they're just going.

48. 0:28:10

    They recognize the Social Security death benefit list. That's being done. This just helps them try to find the beneficiary of the life insurance contract.

49. 0:28:19

    Oh, I see. So they're, they already know that their, or they should know that their insured is dead, and this just helps them find representatives of the estate, the beneficiary, et cetera, et cetera. Okay.

50. 0:28:34

    Correct.

51. 0:28:34

    All right. All right. My s- other question is you require them to, if, if an insurer finds a match, then the insurer shall, within 10 days, confirm the accuracy of the match, contact person, et cetera. Does 10 days, is that reasonable, or is it onerous?

52. 0:28:51

    Depends upon what you use, the mail service or email, I guess, in that respect.

53. 0:28:55

    For the insurance companies.

54. 0:28:56

    Right, for the insurance companies.

55. 0:28:57

    Insurance companies.

56. 0:28:57

    I mean, and I've, I've got no problem-

57. 0:28:58

    I mean, if the, the, I mean-

58. 0:29:00

    ... expanding that from that standpoint.

59. 0:29:02

    All right.

60. 0:29:02

    We see-

61. 0:29:03

    Just-

62. 0:29:03

    ... across the board, um-

63. 0:29:04

    I'm just, I'm asking you. You know the insurance industry better than I.

64. 0:29:08

    You use 10 days on, on some things and 30 days on others. That's a question we can go to-

65. 0:29:12

    Okay

66. 0:29:12

    ... um, leg council on, um, from that standpoint.

67. 0:29:16

    Okay.

68. 0:29:16

    Uh, if that's okay, could I ask that question? Um-

69. 0:29:19

    Sure, yeah, yeah. We, I mean, both are involved. Sometimes a 10-day period, sometimes 30. I would say 30 is probably more standard, I mean, in context with this.

70. 0:29:26

    And, and I would be open to that. I just think this is a way that people, when I say this, people that have a policy out there many times don't know they're the beneficiary on the policy, and that's the, that's just one, one of the only ways I know that they could find that. So I would, I would even be open to the 30 days as a, as an amendment. No problem there.

71. 0:29:47

    That appeared to be all the questions. I don't know if there was a sign-up sheet. Was there? Is there anyone in the audience who wishes to speak?

72. 0:29:57

    There's no one.

73. 0:29:58

    Okay.

74. 0:29:58

    I won't.

75. 0:29:59

    So-

76. 0:30:01

    There's some real good ones back there.

77. 0:30:01

    Huh?

78. 0:30:01

    There's some real good ones back there.

79. 0:30:03

    I know, right? Um-

80. 0:30:05

    There's a lot of them, but.

81. 0:30:08

    So at this point, um, what's the will of the committee?

82. 0:30:12

    Move approval.

83. 0:30:16

    Senator Harbison, what's your mic number? I didn't hear you.

84. 0:30:19

    Uh, 14.

85. 0:30:21

    Okay. Did you say move, do pass? Did you say move, do pass? Okay.

86. 0:30:26

    14.

87. 0:30:26

    Is there a second?

88. 0:30:28

    Second.

89. 0:30:29

    Second.

90. 0:30:30

    Amendment. No, I don't think. No, he didn't.

91. 0:30:31

    Um, is, is there an amendment?

92. 0:30:36

    There's a substitute, but. Yeah, I think the amendment was- Amendment was on line 22.

93. 0:30:43

    10.

94. 0:30:44

    Replace the word- 10, T-E-N, with 30.

95. 0:30:47

    Which line was that?

96. 0:30:48

    Line 22. The word 10, T-E-N, 10 days, replace 10 with, change it to 30. Second.

97. 0:30:59

    Okay. Any further discussion? All in favor of the amendment, raise your hand. Okay, that's unanimous. And now, uh, any further discussion on the bill underlying as amended? Okay. All in favor of the bill as amended, raise your hand. Okay, that's unanimous. And so that'll be a committee substitute, and the LC number is 521056S.

98. 0:31:35

    I think we just did vote on the original bill. We vote on the amendment, and then we vote on the original bill. Okay.

99. 0:31:40

    Okay.

100. 0:31:40

     I think that's all the business in front of the committee. We're adjourned.

101. 0:31:44

     I thank you. You did a good-