Wednesday, February 24, 2016

House Democrats advance unclaimed life insurance bill

(AP) — Kentucky House Democrats have advanced a bill aimed at helping people collect life insurance benefits owed them.

The bill cleared the House Banking and Insurance Committee on Wednesday.
It's in response to a decision by Republican Gov. Matt Bevin's administration to drop its defense of a law designed to protect life insurance benefits.

The measure would amend the Unclaimed Life Insurance Benefits Act to have it apply to life insurance policies written before the law took effect.

The law requires insurance companies to check public death records to verify if policyholders have died, and to make "good faith efforts" to locate beneficiaries.

Several life insurance companies sued, saying the law could not be applied to policies written before the law passed. The companies prevailed at the Kentucky Court of Appeals.