Life insurance; authorize funeral services provider to obtain certain information within two business days.
The passage of HB 913 represents a significant shift in how life insurance information is handled in the funeral industry. Providing expedited access to this information assists funeral providers in managing burial arrangements more efficiently and transparently. This change is particularly beneficial during the sensitive times that follow a death, ensuring that family members are not burdened with unnecessary delays when seeking insurance benefits to finance funeral costs.
House Bill 913 aims to expedite the process for funeral service providers to obtain critical life insurance information related to deceased individuals. Under the provisions of this bill, licensed funeral directors or their employees can request details about a deceased person's life insurance policies from insurers. This request must be accompanied by a death notification, appropriate authorization, and related information pertaining to group policies when applicable. The bill mandates that insurers respond with the relevant information within two business days of receiving the request.
While proponents of HB 913 argue that it improves the coordination between funeral services and insurance providers, concerns have been raised about privacy and the potential misuse of sensitive personal information. The fact that funeral directors are given authority to request such potentially private information about deceased individuals has sparked discussions over the safeguards needed to protect the interests and rights of the deceased and their families. Additionally, the bill imposes penalties for false requests, thereby emphasizing the importance of maintaining integrity and accountability within the funeral service profession.