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AL HB401
Bill
Status
6/4/2015
Primary Sponsor
Mike Hill
Click for details
AI Summary
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Amends Section 27-15-13 of the Alabama Code to require insurers to pay interest on life insurance death benefits if payment is not made within 30 days of receiving satisfactory proof of death and claimant's interest.
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Interest accrues from the date the insurer receives proof of death until the date of actual payment, calculated at the current rate of interest on death proceeds left on deposit with the insurer.
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Applies only to life insurance contracts entered into on or after October 1 following the effective date of the act.
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Excludes annuity contracts from the interest payment requirement.
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Became effective on the first day of the third month following passage and approval by the Governor.
Legislative Description
Life insurance, insurer required to pay interest on money due on contract under certain conditions, applicable only to future policies, Sec. 27-15-13 am'd.
Insurance
Last Action
Delivered to Governor at 5:43 p.m. on June 4, 2015.
6/4/2015