Relating to life insurance, permissible third parties, and financial exploitation of eligible adults

This bill relates to life insurance, permissible third parties, and financial exploitation of eligible adults. Under current law, a delay of a disbursement or transaction involving the money, assets, or property of an eligible adult will expire upon the first to occur of: (1) a determination by the broker-dealer or investment adviser that the disbursement or transaction will not result in or contribute to financial exploitation of the eligible adult, or (2) 15 days after the first delay, unless extended, in which case the delay shall expire no more than 25 days after the date the disbursement or transaction was first delayed. Under the bill, any delay of a disbursement or transaction will expire upon the first to occur of: (1) a determination by the broker-dealer or investment adviser that the disbursement or transaction will not result in or contribute to financial exploitation, or (2) 15 days after the date the broker-dealer or investment adviser first delayed the disbursement or transaction, unless extended, (3) if the 15-day delay is extended, 25 days after the date of the initial delay, or (4) if the 25-day delay is extended, 55 days after the date of the initial delay. “Eligible adult” and “qualified individual” are defined by the bill. Under the bill, if an insurer or qualified individual reasonably believes financial exploitation of an eligible adult has occurred, was attempted, or is being attempted, the insurer or qualified individual may notify the commissioner of insurance (commissioner) when it is determined that financial exploitation may have occurred, been attempted, or is being attempted. An insurer or qualified individual who makes a disclosure of information to the commissioner under the bill or under Code chapter 507E shall be immune from administrative or civil liability for failure to notify the eligible adult of the disclosure. If an insurer or qualified individual reasonably believes financial exploitation of an eligible adult has occurred, was attempted, or is being attempted, the insurer or qualified individual may notify a permissible third party designated by the eligible adult, but is not required to, prior to a review or investigation into the financial exploitation. An insurer or qualified individual shall not notify a permissible third party that they are suspected of financial exploitation or other abuse of the eligible adult. An eligible adult may voluntarily provide contact information for permissible third parties to an insurer, but an insurer or qualified individual shall not be held liable for failing to request such information. An insurer or qualified individual who, acting reasonably and in good faith, complies with the bill shall be immune from administrative or civil liability that may arise from disclosing the eligible adult’s information to a permissible third party. If an insurer or qualified individual reasonably believes a disbursement or transaction is likely to result in, or contribute to, the financial exploitation of an eligible adult, they may initiate an internal review of the requested disbursement or transaction. The insurer may delay a disbursement or transaction from an eligible adult’s policy, contract, or account, or a policy, contract, or account on which an eligible adult is a beneficiary, if the insurer or qualified individual reasonably believes the disbursement or transaction will likely result in or contribute to the financial exploitation of an eligible adult; the insurer provides written notification of the delay and the reason for the delay to all persons authorized to transact business on the policy, contract, or account, except if such person is reasonably believed to have committed or attempted financial exploitation, insurance fraud, or other abuse of the eligible adult; the insurer notifies the commissioner of the delay and provides the reason for the delay; and the insurer continues the internal review of the suspected or attempted financial exploitation of the eligible adult and provides the commissioner with updates upon request. Delay of a disbursement or transaction will expire upon the first to occur of a final determination by the insurer that the disbursement or transaction will not result in or contribute to financial exploitation, 15 days after the date on which the insurer first delayed disbursement of the funds or the transaction, unless extended, 25 business days after the date on which the insurer first delayed disbursement, unless extended, or 55 days after the date on which the insurer first delayed disbursement. Upon petition of the commissioner, the insurer, or another interested party, a court of competent jurisdiction may enter an order terminating, extending, or modifying the delay of the disbursement or transaction and may order any other protective relief necessary. The commissioner may adopt rules regarding the form and manner of notifications under the bill. An insurer or qualified individual who complies with the requirements of the bill shall be immune from any liability that may arise from such delay in a disbursement or transaction. An insurer shall provide training to supervisors and employees employed by the insurer, except employees who are qualified individuals, who handle or advise on complaints, possible fraud, and investigations no later than June 30, 2027. The training shall include the requirements detailed in the bill. An insurer shall provide the required training as soon as reasonably practicable, but at least within one year after the date a supervisor or employee begins employment with or becomes affiliated or associated with the insurer. The commissioner may adopt rules specifying the content and method of training. An insurer shall provide access to or copies of records that are relevant to financial exploitation of an eligible adult to the commissioner and to law enforcement, either as part of a referral or upon the request of the commissioner or law enforcement pursuant to an investigation. The records may include historical records as well as records relating to the most recent financial exploitation of an eligible adult. All records made available to the commissioner or law enforcement shall be considered confidential public records and shall not be available for examination by the public.8(1)(a) and (b) (law enforcement authority).