DE SB71

Requires life insurance carriers to refund all premiums paid to policyholders when a policy is rescinded or voided for lack of insurable interest or violation of insurance code sections 705 or 708.

Exempts policyholders who engaged in fraud from receiving premium refunds under this requirement.

Mandates new owners of life insurance policies notify the issuing company of ownership changes within 120 days, including name, address, and contact information.

Applies only to insurers meeting specific criteria: failing to file or filing late required SEC financial reports within five years, filing seven or more lawsuits to invalidate policies for lack of insurable interest, or receiving credit rating downgrades or withdrawn ratings.

Applies retroactively to all insurance contracts for which premiums were paid as of the bill's effective date and to all policies issued or transferred thereafter by qualifying insurers.