Bill > S826

This bill amends Massachusetts insurance law to require insurers to notify an insurance policy's agent of record before the policy lapses, ensuring that insurance brokers are informed when a client's life, disability, or long-term care policy is at risk of being terminated. Specifically, the insurer must send a notification to the agent at least 21 days before the policy's coverage lapse, either by mail or electronic communication. However, the bill includes several exceptions to this notification requirement: if the insurer has an online system that automatically alerts the broker about pending lapses, if the insurer has a procedure that allows agents to independently check lapse notifications, if the insurer has no record of the current agent, or if the agent is employed by the insurer or its affiliate. Importantly, receiving this notification does not make the agent legally responsible for preventing the policy lapse. The bill aims to improve communication between insurers and insurance agents, potentially helping policy owners avoid unintentional coverage lapses by ensuring brokers are informed about potential policy terminations.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/S826