HB 309 (BR 373) - R. Damron
AN ACT relating to life insurance beneficiaries.
Create a new section of Subtitle 12 of KRS Chapter 304 to define "retained asset account"; preclude an insurer from using a retained asset account as the mode of settlement of payment to a life insurance beneficiary unless the insurer discloses the use of a retained asset account to the beneficiary or the beneficiary's legal representative prior to the transfer of life insurance proceeds to a retained asset account; require an insurer to inform a beneficiary of the right to receive a lump-sum payment of life insurance proceeds in the form of a bank check or similar other immediate full payment of benefits; require insurers to disclose all payment options available to beneficiaries, in written or electronic format, upon the distribution of anything other than a lump-sum payment of life insurance proceeds; set forth specific disclosure requirements upon the use of a retained asset account rather than a lump-sum payment; establish annual insurer reporting requirements to the Department of Insurance regarding retained asset accounts; require all marketing materials, disclosure statements, and supplemental contract forms utilized in connection with retained asset accounts to be filed with the Department of Insurance prior to their use; authorize the commissioner to disapprove any materials, statements, or forms that are inconsistent with the provisions of the section or are otherwise untrue, unfair, deceptive, false, or misleading; require insurers to return any balance held in a retained asset account to the beneficiary if no funds are withdrawn from the account, or if no affirmative directive has been provided to the insurer by the beneficiary, during any continuous 3 year period; authorize the commissioner to promulgate administrative regulations; provide a short tile of the "Beneficiaries Bill of Rights."
Feb 2-introduced in House
Feb 3-to Banking & Insurance (H)
Feb 10-posted in committee
Feb 16-reported favorably, 1st reading, to Calendar
Feb 17-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, February 18, 2011
Feb 18-3rd reading, passed 93-0; received in Senate
Feb 23-to Banking & Insurance (S)
Mar 1-reported favorably, 1st reading, to Consent Calendar
Mar 2-2nd reading, to Rules
Mar 3-posted for passage in the Consent Orders of the Day for Friday, March 4, 2011
Mar 4-3rd reading, passed 37-0; received in House; enrolled, signed by each presiding officer; delivered to Governor
Mar 16-signed by Governor