SB 1449 Summary

• Expands applicability of disability insurance requirements to life insurance and annuity contracts with provisions that safeguard against lapse or provide special surrender benefits if the owner/insured/annuitant meets specified triggers.

• Defines "waiver of premium" or "waiver of monthly deduction" benefits as provisions that waive premiums when insured becomes totally disabled, continuing until end of disability or age 65, with total disability defined by inability to perform job duties.

• Defines "special surrender benefit" as waiver of surrender charges for withdrawals from life insurance or annuity contracts when owner/insured/annuitant has terminal illness, receives home/nursing care, is totally disabled, has chronic illness, or becomes unemployed.

• Authorizes life and disability insurers to offer waiver of special surrender benefits for voluntary or involuntary unemployment and requires supplemental contracts to include specific notice, claim form, proof of loss, and physical examination provisions.

• Prohibits supplemental contracts from claiming to provide long-term care coverage and limits exclusions to suicide, war, riot, felony, drug use, involuntary intoxication, illegal occupation, and disability occurring after age 65.