Tennessee Senate Bill SB1197

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23

Caption

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

Impact

This legislation introduces a significant procedural requirement for life insurance companies, obligating them to respond to requests from funeral directors within one business day. The bill ensures that communication is timely and efficient, allowing for smoother funeral arrangements. Additionally, it stipulates that insurers cannot demand a death certificate from the funeral director to provide the necessary information, preventing potential delays in accessing important policy details.

Summary

Senate Bill 1197, introduced by Senator Taylor, aims to amend various sections of the Tennessee Code related to life insurance and enhance the communication between insurers and funeral directors. Specifically, the bill mandates that insurers provide essential information, including the names of the beneficiaries and the benefit amounts of life insurance policies, to funeral directors or establishments contacting them on behalf of a decedent’s family. The goal is to expedite the process of accessing life insurance details during a time of grief, thereby alleviating some burdens on families who are arranging funerals.

Contention

Despite its beneficial intentions, SB1197 has been met with discussions regarding the implications for insurers. Opponents may express concerns about the administrative burden placed on insurance providers to comply with these deadlines and the potential for abuse of the information by individuals who may not be directly associated with the decedent's family. Supporters, however, argue that the bill is a vital consumer protection measure designed to facilitate timely funeral services and respect the grieving process of families.

Effective_date

The act is set to take effect on July 1, 2023, and will apply to all relevant conduct and insurance policies entered into, amended, or renewed on or after that date.