Amends TCA Title 35; Title 56 and Title 62, Chapter 5.

This bill authorizes a funeral director or funeral establishment providing funeral services for a deceased person insured or believed to be insured under a contract of life insurance to request information regarding the deceased person's life insurance contracts by providing a life insurer with (i) information of a notification of death and (ii) written authorization from the person with legal authority to direct disposition of the deceased person's body. The information must be provided to a designated email address provided by the life insurer on its website or in another manner prescribed by the life insurer.<br /> <br /> Further, this bill authorizes a funeral director or funeral establishment to make an inquiry regarding the following:<br /> <br /> (1) The existence of a contract insuring the life of the deceased person;<br /> <br /> (2) Confirmation that the person who signed the authorization form is or is not a beneficiary on record under any life insurance contract insuring the life of the deceased person; and<br /> <br /> (3) If the authorization is signed by a beneficiary, confirmation that the life insurance policy may or may not be of a benefit amount that will cover the planned funeral arrangements, subject to other contractual terms of the insurance policy being met at the time of payment of the benefit amount.<br /> <br /> This bill requires the life insurer to provide the information requested pursuant to this bill to the funeral director or funeral establishment no later than five business days after receiving all of the information required by this bill. Information provided by the life insurer does not require the life insurer to pay such proceeds in a manner other than required pursuant to the contract of life insurance.<br /> <br /> This bill requires the life insurer to be held harmless for information provided pursuant to this bill, including whether the policy proceeds are collateral for an outstanding loan, are otherwise committed, or are not available to pay or cover the funeral expenses for any reason, including contractual terms of the contract.- However, if the life insurer fails to provide the requested information, then the funeral director or funeral establishment may file a complaint with the department of commerce and insurance. The complaint must include all of the information provided to the life insurer as well as copies of all communications and information received from the life insurer regarding the request for information.<br /> <br /> This bill requires the funeral director or funeral establishment to inform all beneficiaries and each person with legal authority to direct disposition of the deceased's body in writing in bold print that the beneficiary of a life insurance policy has no legal duty or obligation to spend all or a portion of the life insurance policy money on the funeral, debts, or obligations of the deceased before discussing the financial arrangements for burial of the deceased.<br /> <br /> This bill clarifies that the above provisions do not preempt or alter the terms of a contract for life insurance, and information provided by the life insurer does not affect or waive contractual requirements under or defenses to the claim.<br /> <br /> APPLICABILITY<br /> <br /> This bill applies to conduct occurring, and policies entered into, amended, or renewed, on or after January 1, 2025.<br />