Bill > H0881

This bill revises the requirements for notifying policyholders and designated individuals about the lapse or termination of individual life insurance policies for nonpayment of premiums. It mandates that insurers must offer applicants the option to designate a person to receive these notices, and this designation can be made on the application itself or a separate form, requiring the designee's full name and address. Insurers must also annually inform policy owners of their right to make, change, or update a designee, and now, to request notice via certified mail or a commercial delivery service for a fee not exceeding $40.00. The timeframe for sending these notices before a policy lapses or terminates has been extended from 14 days to 60 days. For policies with a face amount over $100,000, policy owners can request a more secure delivery method like certified mail or a commercial delivery service, provided they make the request in writing at least 90 days in advance, and the insurer can charge for this service up to $40.00, with specific provisions for undeliverable notices and alternative proof of delivery methods. These changes will apply prospectively to policies issued or in force on or after January 1, 2027, but will not apply to policies with monthly or more frequent premium payments.

Business and Industry

Ways and Means Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0881/