CT SB00253

Requires life insurance companies to provide written notice of the premium due at least 10 days before terminating or lapsing an individual term life insurance policy for nonpayment of premium, with notice mailed or delivered to the policy owner's last known address by certificate of mailing or other method providing evidence of delivery.

Maintains existing requirement for insurers to notify policy owners when a policy is fully paid up within 31 days of final payment, and every five years thereafter, with exemptions for single premium, universal life, and paid-up addition policies.

Requires employers providing group life insurance to notify employees at least 15 days before cancellation or discontinuation of coverage, using a method that provides evidence of mailing or delivery.

Establishes liability for employers or entities that fail to provide timely group insurance cancellation notice, making them responsible for benefits to the same extent the insurer would have been liable.

Subjects employers or entities failing to provide required notice to group insurance cancellation to fines up to $2,000 per violation, enforced by the Labor Commissioner.

Effective date: October 1, 2010.