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Bill would require insurers to notify third‑party designees to prevent unintentional life‑policy lapses
Summary
Substitute House Bill 2428 would require insurers issuing individual life policies to send written notice at least 30 days before a lapse to the policyholder and any designated third party, obtain proof of delivery, and include a right to designate a trusted third party; supporters include the Office of Insurance Commissioner, AARP, and caregiving advocates; staff estimates $54,000 in implementation costs and an effective date of Jan. 1, 2027.
The committee heard Substitute House Bill 2428, which would require insurers that issue individual life insurance policies to send a written notice at least 30 days before coverage lapses for nonpayment to the policyholder at the last known address and to any designated third‑party designee. The insurer must obtain proof of delivery, which may include delivery confirmation for mailed notices or read receipts for electronic delivery. The requirement excludes group life, policies with premiums due monthly or more frequently, and term…
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