ID S1316

Requires all life insurers in Idaho to offer optional lapse or termination protection on individual life insurance policies, effective for policies issued, reissued, or renewed on or after January 1, 2017.

Prohibits policies with this protection from lapsing or terminating for nonpayment of premiums unless the insurer provides written notice at least 30 days in advance of the lapse or termination date.

Mandates that notice be sent to both the insured and a designee of the insured's choosing via certified mail with return receipt, in person with signed receipt, or electronically with read receipt, with insurers bearing all mailing costs.

Requires notice to include instructions on how to prevent lapse or termination and must be sent to addresses specified by the insured and designee.

Directs the Department of Insurance to promulgate rules implementing the notice requirements under the Administrative Procedures Act.