An Act To Protect Life Insurance Beneficiaries

Sec. 1. 24-A MRSA §2557  is enacted to read:

§ 2557.  Notification prior to payment of benefits to beneficiary

Prior to the payment of any benefits under a life insurance policy to a beneficiary following the death of an insured, an insurer shall provide the following notices to the beneficiary.

summary

This bill requires that, prior to the payment of any benefits, an insurer notify a beneficiary entitled to benefits following the death of an insured under a life insurance policy that the beneficiary has the right to elect payment of the death benefits in a lump sum and, if the beneficiary may elect that the insurer hold the benefits in trust, what the terms and conditions are for holding the benefits in trust.