Georgia Senate Bill SB225

Georgia 2023-2024 Regular Session

• Introduced: 2/21/23
• Refer: 2/22/23
• Report Pass: 2/28/23

Caption

National Association of Insurance Commissioners' Policy Locator; conduct a quarterly search; require an insurer

Impact

The bill's implementation is set to take effect on January 1, 2024. It empowers the Commissioner of Insurance to determine the necessary information and reporting format required from insurers, thus establishing a more organized approach to managing unclaimed life insurance benefits. This move is observed as a significant step in consumer protection, aiming to reduce the number of individuals who remain unaware of their entitlements under insurance policies, ultimately enhancing the financial security of many families.

Summary

Senate Bill 225 aims to amend the 'Unclaimed Life Insurance Benefits Act' in Georgia by requiring insurers to conduct quarterly searches of the National Association of Insurance Commissioners' policy locator. This bill intends to enhance the identification and subsequent disbursement of unclaimed life insurance benefits to beneficiaries. By mandating these searches, the legislation seeks to ensure that insurers are actively working to locate policyholders who may be unaware of their benefits and streamline the reporting process back to the state Commissioner of Insurance.

Contention

While there appears to be a consensus on the importance of unclaimed benefits, there may be concerns regarding the compliance burdens imposed on insurers. Some stakeholders might argue that the additional requirement of conducting quarterly searches could increase operational costs for insurance companies, which they may seek to offset through higher premiums. This financial impact could become a focal point of debate, as proponents of the bill advocate for consumer rights, while opponents highlight the potential economic ramifications within the insurance industry.