ID H0503

Policy owners may choose to receive final and subsequent lapse or termination notices by certified United States mail with signed return receipt instead of first-class mail, at the insurer's expense.

Certified mail notices must be sent at least 10 days prior to the effective date of lapse or termination, compared to the standard 14 days for first-class mail.

If a policy owner elects certified mail notification, both the policy owner and designee receive one notice for final notification and one notice for any subsequent notifications.

If the policy owner fails to notify the insurer of the certified mail election, standard first-class mail notices apply (one final notice and one subsequent notice, sent at least 10 days prior to lapse or termination).

The law applies to individual life insurance policies issued or in force on or after January 1, 2025, but excludes policies with monthly or more frequent premium payments.

The act takes effect on July 1, 2024, and is declared an emergency measure.