Bill forces insurance companies to track down beneficiaries

Life insurance companies will have to annually check to see if policyholders have died and then try to track down beneficiaries under a bill going to Gov. Rick Scott.

The Senate unanimously passed the bill Thursday after the House did the same earlier this week.

The measure (SB 966) would also require insurance companies to turn over policy benefits to the state if they can’t find the beneficiaries.

The bill was a top priority for Chief Financial Officer Jeff Atwater. He says some companies check records so they can stop paying annuities when someone dies, but don’t apply the same practice for life insurance claims. Instead, they sit on billions of dollars and profit off the investments.

The law takes effect immediately if Scott signs the bill. It will apply retroactively.

Republished with permission of the Associated Press.