On February 24, 2025, the Maryland Legislature introduced Senate Bill 665, a legislative proposal aimed at enhancing the processes surrounding life insurance claims and the verification of death for insured individuals. The bill seeks to address issues related to the timely payment of benefits to beneficiaries and the responsibilities of insurance companies in confirming the death of policyholders.

The primary provisions of Senate Bill 665 establish a framework for utilizing the Death Master File, a database maintained by the Social Security Administration that contains information on deceased individuals. Under the bill, insurance companies are required to conduct matches against this file to confirm the death of an insured or annuitant. A match, whether exact or partial, would trigger certain obligations for the insurance provider, although it does not alter the existing requirements for beneficiaries to file claims to receive policy proceeds.

Notably, the bill presumes an insured or annuitant to be deceased if a match is found in the Death Master File, unless the insurance company can provide substantial evidence to the contrary. This provision aims to streamline the claims process and reduce delays in benefit disbursement, which can often occur when insurers are slow to act on death notifications.

The introduction of Senate Bill 665 has sparked discussions among lawmakers and stakeholders in the insurance industry. Proponents argue that the bill will protect beneficiaries from unnecessary delays and ensure that they receive the benefits they are entitled to in a timely manner. Critics, however, have raised concerns about the potential for wrongful presumption of death, which could lead to complications for living insured individuals.

The economic implications of this bill are significant, as it could lead to faster payouts from insurance companies, thereby providing financial relief to families during difficult times. Socially, the bill aims to address the emotional strain that can accompany the claims process, ensuring that beneficiaries are not left waiting for extended periods to access funds that may be crucial for their well-being.

As the legislative process unfolds, experts suggest that the bill could set a precedent for similar measures in other states, potentially reshaping how life insurance claims are handled nationwide. The Maryland Legislature will continue to review the bill, with further debates anticipated as stakeholders weigh in on its potential impact.