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ID H0564

Bill

Status

Introduced

2/26/2014

Primary Sponsor

Health and Welfare Committee

Click for details

Origin

House of Representatives

2014 Regular Session

AI Summary

  • Requires life insurers to offer optional protection against unintentional policy lapse by providing notice via certified mail at least 30 days after a premium is due and unpaid
  • Prohibits policy lapse or termination for nonpayment until at least 30 days after the insurer mails the notice to the insured's provided address
  • Allows insured to designate at least one additional person to receive lapse or termination notices, with no liability imposed on the third party
  • Permits insurers to charge reasonable fees to cover the cost of certified mail notices for this optional protection
  • Applies to all life insurance policies issued, reissued, or renewed on or after January 1, 2015

Legislative Description

Adds to existing law to provide protection against an unintentional lapse of a life insurance policy, to provide that notice shall be given to the insured by certified mail, to provide that the insured may designate a third party to receive notice, to provide that protection against an unintentional lapse is optional, to authorize an insurer to charge fees to the insured and to provide applicability.

LIFE INSURANCE

Last Action

Reported Printed and Referred to Business

2/27/2014

Committee Referrals

Business2/27/2014

Full Bill Text

No bill text available