California Adds Death-Benefit Law as U.S. Seeks Disclosures
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California, the most populous U.S. state, enacted a law this week to protect life-insurance beneficiaries as the federal government seeks to boost disclosures for survivors of its employees.
Insurers must obtain written declarations from beneficiaries in California before directing their settlements to in-house accounts, according to a law that took effect on Jan. 1. Survivors “will be able to decide for themselves” to keep their money with insurers in a so-called retained-asset account or receive the benefits in a lump sum, California Insurance Commissioner Dave Jones said in an October statement.