House panel backs chance for insureds to get certified-mail notice before life-policy lapse

Representative Lance Clow, chairing the House Business Committee, won committee approval Feb. 27 to send House Bill 265 to the full House with a “do pass” recommendation. The bill would allow life-insurance policy owners to request certified-mail lapse notices for policies with more than $50,000 in face value and require insurers to attempt certified-return-receipt delivery to both the policy owner and any previously designated third party before a policy termination.

The measure aims to reduce involuntary forfeitures that sometimes occur when first-class mail is missed. Representative Lance Clow, the bill sponsor, described the proposal as a documentation mechanism that gives insured people—and their named designees—a better chance to learn of…