Regular Session 2017-2018 House Bill 0152 P.N. 0399

PRIOR PRINTER'S NOS. 116, 145

PRINTER'S NO. 399

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

152

Session of

2017

INTRODUCED BY M. QUINN, DeLUCA, PICKETT, BARRAR, BIZZARRO,

CALTAGIRONE, DAVIDSON, DAVIS, DOWLING, DRISCOLL, FLYNN,

GAINEY, HELM, LONGIETTI, MURT, O'NEILL, PASHINSKI, READSHAW,

WARD, WATSON, MATZIE, D. COSTA, KORTZ, ENGLISH AND BARBIN,

JANUARY 23, 2017

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

FEBRUARY 7, 2017

AN ACT

Amending Title 40 (Insurance) of the Pennsylvania Consolidated

Statutes, in general provisions, providing for life insurance

database.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 40 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 102. Life insurance database.

(a) Contact information.--The following shall apply

regarding contact information:

(1) The department or its designee shall maintain an

electronic database of contact information for each life

insurer that has life insurance policies or , annuity

contracts OR RETAINED ASSET ACCOUNTS in force in this

Commonwealth.

(2) All life insurers, including those insurers under

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Article XXIV of the act of May 17, 1921 (P.L.682, No.284),

known as The Insurance Company Law of 1921, having a life

insurance policy or , annuity contract OR RETAINED ASSET

ACCOUNT in force in this Commonwealth shall provide and

maintain with the department or its designee a valid e-mail

address to which the department or its designee may send the

requests received under this act.

(b) Who may request search.--

(1) Subject to paragraph (2), the following may file

with the department or its designee a request to conduct a

search for life insurance policies or , annuity contracts OR

RETAINED ASSET ACCOUNTS covering a decedent:

(i) A member of the decedent's family who has

requested and obtained a copy of the decedent's death

certificate.

(ii) An executor or administrator A PERSONAL

REPRESENTATIVE of the decedent's estate.

(2) A request to conduct a search may occur only if:

(i) the decedent was a resident or former resident

of this Commonwealth; and

(ii) the request is accompanied by a copy of the

decedent's death certificate.

(3) The right to file a request to conduct a search may

not be assigned.

(1) The department or its designee shall transmit a

request to conduct a search to all life insurers having life

insurance policies or , annuity contracts OR RETAINED ASSET

ACCOUNTS in force in this Commonwealth along with information

necessary for responding directly to the person filing the

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request.

(2) The information submitted to insurers must be on a

standardized form or the search requests must be available to

the life insurers on the secure website of the department or

its designee.

(d) Good faith efforts.--

(1) In response to a search request under this section,

each insurer shall in good faith examine its books and

records to determine whether the decedent is covered by a

life insurance policy or , annuity contract OR RETAINED ASSET

ACCOUNT . Upon a finding that coverage does exist, the insurer

shall directly notify the REQUESTING PERSONAL REPRESENTATIVE,

IF ANY, AND THE beneficiary or beneficiaries to whom the

benefits are due .

(2) Within 90 days of receiving the search request from

the department or its designee, the insurer shall complete

good faith efforts to confirm the death of the insured,

annuity contract holder or retained assets account holder

against other available records and information. The efforts

shall be documented by the insurer and determine whether

benefits are due in accordance with the applicable policy or

contract.

(3) WITHIN 120 DAYS OF RECEIVING THE SEARCH REQUEST FROM

THE DEPARTMENT OR ITS DESIGNEE, IF ALL THE BENEFICIARIES TO

WHOM THE BENEFITS ARE DUE HAVE NOT BEEN LOCATED, THE ISSUER

SHALL DIRECTLY NOTIFY THE REQUESTING PERSONAL REPRESENTATIVE,

IF ANY, TO ADVISE THE PERSONAL REPRESENTATIVE OF THE NAME OF

EACH BENEFICIARY WHO HAS NOT BEEN LOCATED.

(e) Beneficiary claim.--If, as a result of the search under

this section, benefits are due, the insurer shall:

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(1) Use good faith efforts to locate each beneficiary.

The efforts shall be documented by the insurer.

(2) Provide the appropriate claims forms or instructions

to each beneficiary to make a claim, including instructions

on the need to provide an official death certificate, if

applicable under the policy or contract.

(f) General procedure.--An insurer under this section shall

implement procedures to account for all of the following:

(1) Common nicknames, initials used in lieu of a first

or middle name, use of a middle name, compound first and

middle names and interchanged first and middle names.

(2) Compound last names, maiden or married names and

hyphens, blank spaces or apostrophes in last names.

(3) Transposition of the month and date portions of the

date of birth.

(4) An incomplete Social Security number.

(g) Fees.--

(1) The department may charge a fee of $10 for each

search request processed through the database.

(2) The department may develop and implement an

electronic payment system that may be used regarding search

requests.

(3) Beginning one year after the effective date of this

section, the department shall have authority to increase the

fee charged. The fee increase may not exceed:

(i) an annual cost-of-living adjustment as

calculated by applying the percentage increase in the

Consumer Price Index for All Urban Consumers (CPI-U) for

the Pennsylvania, New Jersey, Delaware and Maryland area

for the most recent 12-month period for which figures

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have been officially reported by the United States

Department of Labor, Bureau of Labor Statistics; and

(ii) twenty percent annually.

(h) Rules and regulations.--The department may promulgate

rules and regulations necessary to implement the provisions of

this section.

(I) DEFINITIONS.--AS USED IN THIS SECTION, THE TERM

"PERSONAL REPRESENTATIVE" SHALL HAVE THE SAME MEANING AS GIVEN

TO THE TERM UNDER 20 PA.C.S. § 102 (RELATING TO DEFINITIONS).

Section 2. This act shall take effect July 1, 2017, or

immediately, whichever is later.

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