AB 2578 Summary

• Requires insurers to provide accelerated death benefit reports to policyholders no less than one month after payment, eliminating the requirement for monthly reporting.

• Modifies proof of loss requirements for supplemental benefits by specifying that insurers may require written proof within 90 days for claims with periodic payments contingent on continuing loss, and within 90 days of occurrence for other claims.

• Adds aviation activities (other than as a fare-paying passenger) to the list of permissible exclusions for supplemental benefits in life insurance policies.

• Changes waiver of premium benefits for total disability beginning before age 60 to waive all premiums for the entire period the insured remains totally disabled, rather than only until age 65.

• Requires accelerated death benefit statements on term life insurance policies to be included within the accelerated death benefit provision itself, rather than on the policy's first page.