Mississippi House Bill HB1434

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Life insurance; authorize funeral services provider to obtain certain information within two business days.

Impact

The bill aims to streamline the process for funeral directors in managing the affairs of deceased persons by giving them a formal mechanism to access life insurance information quickly. This change is likely to benefit families as it may lead to expedited funeral arrangements and clearer financial guidance regarding available funds from life insurance. Additionally, by outlining the specific requirements for information requests, the bill also enhances accountability within the insurance sector to respond timely to funeral service providers.

Summary

House Bill 1434 authorizes funeral service providers to obtain essential information regarding a deceased person's life insurance. The bill requires that funeral directors or their employees can request information about life insurance policies, which must be provided by insurers within two business days of the request. The information includes details such as the existence of insurance contracts, beneficiaries, outstanding liens or loans on policies, and the amount of benefits payable. This ensures that funeral service providers have timely access to critical information that can help in arranging the services for the deceased.

Contention

While the bill appears to streamline necessary processes for funeral service providers, concerns could arise around consumer protection issues. The requirement for insurers to provide information quickly raises questions about privacy and how personal information is managed. Critics might argue that the rapid dissemination of sensitive information, such as beneficiary details and financial obligations, could lead to potential misuse if not handled appropriately. Furthermore, the bill mandates that funeral service providers inform beneficiaries of their rights regarding the use of insurance money, a provision that emphasizes transparency but could also be seen as imposing undue legal obligations on funeral directors.