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2012 -- S 2749 | |
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LC01930 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO INSURANCE - LIFE INSURANCE AND ANNUITIES | |
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Introduced By: Senators Gallo, and Miller | |
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Date Introduced: March 08, 2012 | |
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Referred To: Senate Corporations | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Chapter 27-4 of the General Laws entitled "Life Insurance Policies and |
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Reserves" is hereby amended by adding thereto the following sections: |
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27-4-28. Life insurance suitability. -- A producer shall not recommend to any person |
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the purchase, sale or exchange of any life insurance policy, or any rider, endorsement or |
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amendment thereto, without reasonable grounds to believe that the transaction or |
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recommendation is suitable for the person based upon reasonable inquiry concerning the person’s |
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insurance objectives, financial situation and needs, age and other relevant information known by |
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the producer. When a producer recommends a group life insurance policy, “person” shall refer to |
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the intended group policyowner. Insurers shall institute appropriate procedures to review the |
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suitability of life insurance transactions similar to those instituted for the suitability of annuity |
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sales. |
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27-4-29. Life insurance database. -- (a) The department of business regulation shall |
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maintain a central database of electronic contact information for each life insurer having policies |
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in force in this state. |
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(b) On and after January 1, 2013, any member of the immediate family of a decedent |
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searching for life insurance policies covering the decedent may file a request with the department |
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for a search pursuant to this section, provided the decedent was a resident or former resident of |
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this state. Any such request shall include a copy of the subject decedent’s death certificate. The |
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right to file a request for a search pursuant to this section may not be assigned. |
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(c) The department shall transmit any such request to all life insurers having policies in |
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force in this state, along with information necessary for responding directly to the person filing |
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the request. Each such insurer shall examine its books and records to make a determination as to |
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the existence of coverage of the subject decedent, and upon a finding that such coverage does |
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exist, shall directly notify the person filing the request. |
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(d) The department may adopt such rules and regulations as may be necessary to |
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implement the provisions of this section. |
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(e) Insurers of credit life insurance, as defined in title 27, chapter 31, are exempt from |
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inclusion in the central database and shall not be subject to the requirements of section 27-4-28. |
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SECTION 2. This act shall take effect on January 1, 2013. |
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LC01930 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO INSURANCE - LIFE INSURANCE AND ANNUITIES | |
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This act would add the requirement of suitability to the sale of life insurance and set up a |
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procedure whereby potential beneficiaries can contact the department of business regulation and |
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have all licensed insurers conduct a search for life insurance policies covering a decedent. |
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This act would take effect on January 1, 2013. |
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LC01930 | |
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