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Committee backs bill to extend property insurance temporarily to beneficiaries named on transfer‑on‑death deeds
Summary
House Bill 464 would require real‑property insurance to continue to cover a beneficiary identified on a transfer‑on‑death deed for the earlier of 45 days after the owner’s death, the policy’s expiration, or placement of a new policy. Supporters said the measure closes a gap that can leave beneficiaries with uninsured property; an amendment clarified language and passed.
Representative Steve Fitzpatrick told senators HB464 would prevent unintended gaps in property insurance when ownership transfers on death. Under existing law, recording a transfer‑on‑death deed causes title to vest in the beneficiary at the owner’s death, and insurers were sometimes treating the beneficiary as not having an insurable interest and canceling coverage immediately.
Proponents, including Deputy Insurance Commissioner Frank Cote and estate‑planning lawyer Corina Wilmot, said the bill provides a temporary bridge so heirs or personal representatives have time to establish replacement coverage or otherwise manage the estate. Wilmot described three common problems the bill addresses: lack of gap coverage, deeds recorded without legal counsel, and difficulty canceling policies without opening probate.
Senators asked clarifying questions about the 45‑day period, how it interacts with existing policy expiration and premium refunds, and how a beneficiary may disclaim interest; sponsors explained the extension is the earlier of 45 days, policy expiration or new policy placement and that existing premium‑refund mechanics would apply.
Committee adopted a technical amendment clarifying references to "real property" and rights and obligations; the amendment passed and the committee concurred on the bill as amended.
