AL HB78

Creates the Beneficiaries' Bill of Rights requiring complete disclosure, transparency, and accountability for all life insurance death benefit payment methods.

Prohibits insurers from using retained asset accounts as the settlement method unless the beneficiary is informed in advance and provided a complete written or electronic explanation of all payment options available.

Requires insurers to disclose specific account details including initial interest rates, FDIC coverage, withdrawal limitations, fees, account statements, and that beneficiaries may derive income from investment gains on retained funds.

Mandates annual reporting to the Alabama Department of Insurance on retained asset accounts, including number of accounts, dollar balances, investment earnings, fees charged, and interest rate methodology.

Requires insurers to immediately return remaining account balances to beneficiaries when accounts become inactive (no withdrawals and no beneficiary directive for four consecutive years); violations are treated as deceptive trade practices violations.