Bill Caption

Relating to the identification and handling of unclaimed life insurance and annuity contract proceeds.

Fiscal Notes

From the LBB: the number of policies that would be affected under the bill's provisions is unknown; therefore, the bill would have an indeterminate fiscal impact to the state beginning in FY2021.

Bill Analysis

HB 1243 would amend the Insurance Code to require insurers to compare its in-force life insurance policies, annuity contracts, and retained asset accounts to a Death Master File at least semi-annually to identify any potential matches. For each match with the Death Master File, the insurer must, by no later than the 90th day of discovery, make an effort to confirm the death of the account holder, determine if the account holder had any additional coverage, and determine if any proceeds may be due. If a match is confirmed, but the insurer has failed to locate a beneficiary by the third anniversary of the date, the proceeds will remain as unclaimed and be delivered to the comptroller.   

Vote Recommendation Notes

This bill violates our free market and limited government by adding a regulation on how insurers must handle unclaimed life insurance and annuity contract proceeds. It is the responsibility of appropriate parties of deceased individuals to make a claim for proceeds in a timely manner rather force insurers to constantly check for unclaimed proceeds. For these reasons, we oppose HB 1243.