Committee advances bill requiring 30-day notice before life-insurance lapse

House Bill 2428, which would require insurers to send written notice at least 30 days before an individual life insurance policy lapses for nonpayment and to obtain proof of delivery, was reported out of the Consumer Protection and Business Committee on Feb. 4, 2026.

Peter Cloudfelter, committee staff, told members the bill requires insurers to send a notice to the policyholder and any third‑party designee at least 30 days before coverage will lapse for nonpayment and to retain records sufficient to show proof of delivery; the proposal includes an option to document first-class mail using an Intelligent Mail barcode offered by the United States Postal Service, and sets an effective date of Jan. 1, 2027. "This is the bill that requires insurers to send written notice of termination of coverage and the existing 3 year right to reinstatement…at least 30 days before terminating coverage under an individual life insurance policy," Cloudfelter said.

Representative Ryu moved amendment H3301.1 to clarify that the 30‑day notice applies to lapse or termination for nonpayment rather than other types of termination, and to remove the requirement that the notice include information about the existing right to reinstatement. "It's about giving 30 days notice before a policy will lapse," Ryu said, adding the change responds to concerns about unintentional cancellations. The amendment was adopted by voice vote.

Vice Chair Hackney moved that the adopted amendment be incorporated into a substitute and that the substitute be reported out with a due‑pass recommendation. Supporters, including Representative Corey, urged adoption on consumer‑protection grounds; the committee recorded 15 members present and 15 voting in the affirmative and reported the substitute House Bill 2428 out of committee with a due‑pass recommendation.

The bill now moves toward floor consideration where sponsors and opponents can offer further changes.