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Senate committee hears 'policyholder bill of rights' on life insurance; industry warns of unintended consequences
Summary
A sponsor presented S.B. 324 to let policyholders retain original agents and to require insurers to search the NAIC policy-locator and report results; industry witnesses said parts of the proposal could conflict with insurer–agent contracts and urged further work, and the committee did not vote.
A Senate Insurance and Labor Committee heard testimony on S.B. 324, described by the bill sponsor as a "policyholder bill of rights" that would let a policyholder retain their original agent after a policy sale and require life insurers to search a National Association of Insurance Commissioners (NAIC) policy-locator service and report results to the state insurance commissioner.
The sponsor said the bill addresses long-standing problems when insurers are sold or change servicing arrangements and policyholders cannot obtain information from a new servicer. "The policy holder has the right to retain his or her original agent of record for a policy even if the insurer sells or…
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