Banks would avoid certain insurance claims when handling others' payouts

Covered banks and securities middlemen would face no liability under this insurance rule for payouts they receive for another person. The protection covers banks and securities intermediaries, called securities middlemen here, that meet the cited legal definitions and receive payouts for someone else. The policy must violate rules about who may benefit from insurance on another person's life or body. Any liability of the person for whom the bank or middleman receives the payout would remain. This protection would apply to lawsuits brought on or after the date the bill becomes law.