bill letting funeral directors ask who the beneficiary is

The text as introduced · 729 words

89R181 SCL-D

By: Kolkhorst
S.B. No. 2250

A BILL TO BE ENTITLED

AN ACT

relating to disclosure of a beneficiary to a funeral director under

a life insurance policy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 1103, Insurance Code, is amended by

adding Subchapter E to read as follows:

SUBCHAPTER E. DISCLOSURE TO FUNERAL DIRECTOR

Sec. 1103.201. DEFINITIONS. In this subchapter:

(1) "Funeral director" has the meaning assigned by

Section 651.001, Occupations Code.

(2) "Heir" and "personal representative" have the

meanings assigned by Chapter 22, Estates Code.

Sec. 1103.202. APPLICABILITY OF SUBCHAPTER. (a) This

subchapter applies only to a life insurance policy with a death

benefit in an amount of not more than $15,000 issued in this state

by:

(1) a legal reserve life insurance company;

(2) a mutual assessment life insurance company;

(3) a stipulated premium life insurance company;

(4) a burial association; or

(5) a fraternal benefit society.

(b) This subchapter applies only to a funeral director who:

(1) is directing a decedent's funeral in this state;

(2) is provided reasonably sufficient information by

an heir, an heir's representative, or the personal representative

of the decedent that the decedent is or may be an insured under a

life insurance policy; and

(3) needs information from the issuer of the life

insurance policy because an heir, heir's representative, or

personal representative of the decedent is unaware or unable to

provide information on:

(A) whether the decedent was the owner of a life

insurance policy; or

(B) the identity of the designated beneficiary

under the policy.

Sec. 1103.203. REQUEST FOR DISCLOSURE BY FUNERAL DIRECTOR.

(a) A funeral director to whom this subchapter applies may request

a disclosure in accordance with this section from a life insurer to

which this subchapter applies if the director has obtained written

consent from an heir, an heir's representative, or the personal

representative of the decedent for the director to contact a

specific life insurer concerning designated beneficiaries in a

policy insuring the life of the decedent.

(b) The written consent described by Subsection (a) must

include:

(1) the name and address of the heir, heir's

representative, or personal representative providing consent;

(2) a brief statement of the facts establishing

knowledge as to the family and nearest relatives of the decedent;

(3) a brief statement of facts describing the basis

for the belief the decedent was or may have been an insured under a

life insurance policy with a particular life insurer; and

(4) a brief statement of facts concerning whether the

decedent was or may have been the owner of the policy.

(c) A funeral director shall provide a copy of the written

consent to the life insurer requested to provide information under

this section.

Sec. 1103.204. DISCLOSURE BY LIFE INSURER. (a) Except as

provided by Subsection (b), a life insurer shall provide a written

disclosure of the designated beneficiary of a life insurance policy

owned by the decedent for which a funeral director requests

information under Section 1103.203. The insurer shall provide the

disclosure not later than the fifth day after the date the insurer

receives the request.

(b) A life insurer may not disclose the designated

beneficiary of a life insurance policy insuring the life of a

decedent if the decedent is not the owner of the policy unless the

life insurer receives the written consent of the owner to provide

the disclosure. The insurer may advise a funeral director who

requests information under Section 1103.203 that the decedent is

not the owner of the policy.

Sec. 1103.205. CONSTRUCTION OF SUBCHAPTER. This subchapter

may not be construed to:

(1) require a life insurer to disclose the owner or

designated beneficiary of a life insurance policy insuring the life

of a decedent that is not owned by the decedent without the owner's

written consent;

(2) establish a right of the funeral director or

assignee of the funeral director to benefits under a life insurance

policy unless the designated beneficiary of the policy has executed

a written assignment of benefits to the funeral director; or

(3) establish any determination that benefits are

payable under the terms of the applicable life insurance policy.

Sec. 1103.206. LIMITATION OF LIABILITY. A life insurer is

not subject to civil liability or administrative action by making

an authorized disclosure under this subchapter.

SECTION 2. This Act takes effect September 1, 2025.