Bill > H1094

This bill modifies Chapter 175 of the General Laws to require insurance companies to notify an agent of record when a life, disability, or long-term care insurance policy is about to lapse (terminate). Specifically, the insurer must send a notice to the agent at least 21 days before the coverage lapse, either by mail or electronically. However, the bill provides 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 allowing agents to independently check lapse notices, if the insurer has no record of the current agent, or if the agent is employed by the insurer or its affiliate. The bill explicitly states that receiving such a notice does not make the agent responsible for preventing the policy lapse. This legislation aims to improve communication between insurers and insurance agents about potential policy terminations, potentially giving policyholders more opportunity to prevent unintended coverage loss.

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https://malegislature.gov/Bills/194/H1094