HARRISBURG, Pa. (WHTM) – A Pennsylvania lawmaker has unveiled legislation that would limit life insurance payouts when the policyholder dies while committing a terrorist act.
Rep. Aaron Bernstine (R-Beaver/Butler/Lawrence) said his proposal, House Bill 1996, would allow insurance companies to limit payouts to beneficiaries to only the amount of premium paid.
The bill would also redirect a portion of the benefits to victims.
“A terrorist can take out a large life insurance policy during the planning process of their horrific crimes to benefit their heirs or their families, such was the case with the 2015 San Bernardino attack,” Bernstine said in a statement. “To me, it’s a no-brainer that victims and their families are the ones who should be getting that money.”