Bill > HB2428

This bill requires life insurance companies to provide at least 30 days' written notice before an individual life insurance policy lapses due to nonpayment of premiums, sending this notice to both the policyholder and a designated third party. This new requirement aims to prevent unintentional lapses and cancellations by giving policyholders and their chosen contacts a heads-up. Insurers must also be able to prove they sent these notices, using methods like first-class mail with tracking or certified mail. However, these notification rules do not apply to group life insurance, policies with monthly or more frequent premium payments, or term life insurance policies with a term of one year or less. The bill also establishes that policyholders have the right to designate a third party to receive these notices, either at the time of application or later, but this designation does not create any legal responsibility for the third party to pay premiums or inform the policyholder, nor does it create liability for the insurer if they fail to send the notice to the third party. This act will take effect on January 1, 2027, and will apply to life insurance policies issued on or after that date.

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https://app.leg.wa.gov/billsummary?BillNumber=2428&Year=2025&Initiative=false