Repeals requirements for the Department of Insurance to maintain a central database for contact information on life insurance policies in force in the state. (7/1/20)
Impact
The repeal of this legislative requirement potentially impacts the ability of families to easily locate life insurance policies of deceased relatives. By abolishing the central database, beneficiaries may find it increasingly difficult to identify policies, as they will not have an accessible, consolidated source of information. This change could lead to a negative effect on those grieving family members who might struggle to navigate the insurance landscape without assistance in retrieving essential information on beneficiaries' policies.
Summary
Senate Bill 70, introduced by Senator Smith, aims to repeal the requirements for the Louisiana Department of Insurance to maintain a central database containing contact information for life insurance policies currently in force within the state. Previously, this law mandated the creation of an electronic database that facilitated family members of decedents to request and obtain information regarding existing life insurance policies, provided they submitted a death certificate. The bill effectively removes this obligation, with the change set to take effect on July 1, 2020.
Sentiment
The general sentiment surrounding SB 70 is mixed among legislative discussions. Supporters of the repeal argue that it could lessen bureaucratic needs and streamline the responsibilities of the Department of Insurance. However, critics express concern that it undermines consumer protection and family rights regarding policy information, thereby making it harder for policy beneficiaries to exercise their rights.
Contention
Notable points of contention include the balance between reducing government oversight and ensuring that families have access to essential information regarding insurance policies. Opponents highlight that the absence of a central database could lead to families being unaware of existing policies, potentially resulting in unclaimed benefits. The debate emphasizes the conflict between operational efficiency for the department and consumer rights to adequate information regarding their entitlements.
Repeals requirements for the Department of Insurance to maintain a central database for contact information on life insurance policies in force in the state
Provides relative to the authority of the Insurance Committee of the Assessors' Insurance Fund to contract for group insurance. (8/1/20) (EN NO IMPACT LF EX See Note)