Transfer on death deed-insurance coverage.

Plain English Breakdown

The candidate explanation included a statement about the new property owner being able to inform the insurer if they do not want the property. However, this is not explicitly supported by the official source material.

Insurance Coverage for Property Transfers

This law requires insurance companies to continue covering a property for up to two months after someone dies and leaves it to another person through a transfer on death deed.

What This Bill Does

• Extends insurance coverage for real estate when the owner passes away and leaves it to someone else using a transfer on death deed.
• Insurance must cover losses as if the new property owner was named in the policy, for up to two months after the original owner's death.
• The person who gets the property must tell the insurance company about the change within 60 days of receiving the property.
• Before coverage ends, the insurer must send a notice to the new property owner at least 20 business days before the end of the 60-day period.

Who It Names or Affects

• People who own real estate and use a transfer on death deed to leave it to someone else.
• Insurance companies that provide coverage for properties transferred through a transfer on death deed.

Terms To Know

Transfer on Death Deed

A legal document used by property owners to automatically pass their real estate to another person when they die, without going through probate.

Named Insured

The person or entity specifically listed in an insurance policy as being covered under the terms of that policy.

Limits and Unknowns

• This law only applies to insurance contracts made, entered into, or renewed on or after July 1, 2023.
• It does not apply if the new property owner decides they do not want the property and disclaims their interest.

Official Summary Text

Bill Summary - 23LSO-0149
Bill No.:

HB0096

Effective:

7/1/2023

LSO No.:

23LSO-0149

Enrolled Act No.:

HEA No. 0045

Chapter No.:

85

Prime Sponsor:

Crago

Catch Title:

Transfer on death deed-insurance coverage.

Subject:

Requiring continued insurance coverage for 60 days after a transfer on death deed takes effect.

Summary/Major Elements:

This act requires that, upon transfers of property made under a transfer-on-death deed, any insurance coverage on the property transferred must be extended to cover losses as if the grantee beneficiary of the property was a named insured.

Insurance coverage extended as required by this act continues for sixty (60) days after the transfer of title takes place.

Not later than sixty (60) days after the transfer of title, each grantee beneficiary must notify the insurer of a transfer of title and must provide a current address for the beneficiary. Then, within twenty (20) days before the end of the sixty (60) day extension, the insurer must provide written notice to the grantee beneficiary that the extended insurance coverage lapses after sixty (60) days. The written notice must specify the exact date on which insurance coverage will cease.

The extension of insurance does not apply if the grantee beneficiary disclaims the beneficiary's interest in the real property.

This act applies to all insurance contracts executed, entered into, or renewed on and after July 1, 2023.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

23LSO-0149

ORIGINAL House

ENGROSSED
Bill No
.
HB0096

ENROLLED ACT NO. 45,

HOUSE OF REPRESENTATIVES

SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 General Session

AN ACT relating to insurance and probate; requiring the extension of insurance coverage applicable to a property under a transfer on death deed as specified; requiring notice and coverage for a grace period before termination of insurance coverage; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 26
‑
23
‑
109 is created to read:

26
‑
23
‑
109.

Insurance coverage for real property subject to transfer on death deeds.

(a)

For transfers on and after July 1, 2023, upon transfer of title to an interest in real property after the death of the owner pursuant to a transfer on death deed under W.S. 2
‑
18
‑
103, any insurance coverage on the property transferred shall be extended to cover losses to the property as if the grantee beneficiary designated in the transfer on death deed was a named insured.

(b)

The extension of insurance coverage to the grantee beneficiary shall continue for sixty (60) days after the transfer of title under subsection (a) of this section.

(c)

Not later than sixty (60) days after the transfer of title under subsection (a) of this section, each grantee beneficiary shall notify the insurer of a transfer in title under this section and shall provide a current address for the insurer to contact the grantee beneficiary. Failure to provide notice as required under this subsection shall not negate the extended insurance coverage required under this section.

(d)

Not less than twenty (20) business days before the end of the period specified in subsection (b) of this section and if the grantee beneficiary has provided the notice required under subsection (c) of this section, the insurer shall send notice in writing to the grantee beneficiary who has received title to the interest in real property under W.S. 2
‑
18
‑
103 stating that insurance coverage for the property will terminate on the date specified in subsection (b) of this section. Any notice sent to a grantee under this subsection shall include the exact date on which coverage for the grantee will cease.

Section 2.

W.S. 2
‑
18
‑
103(o) is amended to read:

2
‑
18
‑
103.

Transfer on death deed.

(o)

Title to the interest in real property transferred by a transfer on death deed shall vest in the designated grantee beneficiary only on the death of the owner.
Insurance coverage applicable to a property that is in force at the time of the death of the last titled owner shall be transferred and extended to the designated grantee beneficiary in accordance with W.S. 26
‑
23
‑
109 for a period of up to sixty (60) days following the date of the death of the last owner, unless the grantee beneficiary has disclaimed interest in the real property.

Section 3.

The provisions of this act shall apply only to insurance contracts executed, entered into or renewed on or after July 1, 2023.

Section 4
.

This act is effective July 1, 2023
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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