Relating to the insurable interest of certain persons providing care to individuals with disabilities in the life of those individuals.

Contracts

• Employment Agreements: Update contracts for all direct care staff and management. Insert a representation and warranty clause stating the employee does not and will not hold an insurable interest in any non-relative resident.
• Admission Agreements: Add a disclaimer stating the facility prohibits staff from being named beneficiaries and assumes no liability for private financial arrangements violating this policy.

Hiring/Training

• Employee Handbook: Immediately amend the Code of Conduct to explicitly prohibit soliciting or accepting beneficiary status on a resident's life insurance policy. Define this as a terminable offense.
• Verification Protocol: Establish a workflow to verify "relative" status (within the third degree of consanguinity or affinity) if an employee claims an exception. Require documentation (birth certificates, marriage licenses) before allowing the designation.

Reporting & Record-Keeping

• Resident File Audit: Review all resident files where the facility assists with financial management or retains copies of insurance policies. Flag any policy naming a staff member.
• Renewal Tracking: For flagged policies, note the renewal date. You must advise the resident or legal guardian to change the beneficiary prior to the first renewal on or after January 1, 2026, or the designation will be voided by law.

Fees & Costs

• No New State Fees: There are no direct filing fees associated with this bill.
• Operational Costs: Minimal administrative costs related to legal review of handbooks and auditing current resident files.