Tennessee House Bill HB1173

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23
• Failed: 3/21/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 35; Title 56 and Title 62, Chapter 5, relative to life insurance.

Impact

The bill mandates that insurers must respond to requests for information within one business day of being contacted by a funeral director or establishment. This requirement is aimed at expediting the process of obtaining life insurance policy details, which can often be crucial in making arrangements promptly following a person's death. Additionally, the bill includes provisions that prohibit insurance companies from demanding a death certificate as a prerequisite for providing such information, thus streamlining the process further.

Summary

House Bill 1173 aims to amend the Tennessee Code related to life insurance, particularly in regard to the exchange of information between insurers and funeral directors. The legislation requires that insurers must provide the names of beneficiaries, benefit amounts under life insurance policies, and other requested information to funeral directors or establishments that are acting on behalf of the decedent's family. This exchange of information is intended to facilitate the burial or cremation process after a death, ensuring that funeral service providers can access necessary information in a timely manner.

Enactment

HB1173 is set to take effect on July 1, 2023, and will apply to all policies that are entered into, amended, or renewed on or after this date. This timeframe aims to ensure that the provisions will be in place to assist families navigating the complexities of funeral arrangements and the associated insurance claims during a time of loss.

Contention

While the bill's intent is to simplify procedures for grieving families, there are potential points of contention regarding privacy and the handling of sensitive information by insurers. Critics might assert that requiring rapid disclosure of beneficiary information could lead to abuses or mishandling of personal data. Furthermore, the enforcement of compliance by insurers, which includes provisions for penalties in case of non-compliance, raises questions about how effectively these regulations will be implemented and monitored by the Department of Commerce and Insurance.