Bill > S729

This bill amends Chapter 175 of the General Laws to require insurance companies to notify an insurance policy's agent of record before terminating coverage for life, disability, or long-term care insurance policies. Specifically, the insurer must send a notification to the agent at least 21 days before the coverage lapse, either by mail or electronically. The bill includes several exceptions to this notification requirement: if the insurer has an online system that automatically notifies the broker of record about a pending policy lapse, if the insurer has a procedure that allows agents to independently check lapse notifications, if the insurer has no record of the current agent of record, or if the agent is employed by the insurer or an affiliated company. Importantly, receiving such a notice does not make the agent responsible for preventing the policy lapse. The purpose of this legislation appears to be ensuring that insurance agents are informed about potential policy terminations, which could help policy owners avoid unintended loss of insurance coverage.

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https://malegislature.gov/Bills/194/S729