By Bob Katzen

Another bill heard by the Financial Services Committee would allow the holder of a life insurance policy to update their beneficiaries using an online tool if one is provided by the life insurance company, as long as the company takes reasonable steps to verify that the identity of the requester matches the holder of the policy. This bill would abolish a current law that requires all beneficiary changes to be made in person, with a “wet” signature and witness present.

“Technology has significantly developed since life insurance beneficiary practices were set in the commonwealth,” said sponsor Sen. Barry Finegold (D-Andover). “Many life insurance companies are now able to accept requests to change designated beneficiaries under life or endowment insurance policies, and this bill brings our legislation up to speed with the industry. While we move toward more technologically advanced processes, we can maintain safety and identity verification in similarly advanced ways. This bill will help make this process more convenient and time-efficient for all parties.”