Bill > H5628

This bill requires the Rhode Island Department of Business Regulation to develop a mandatory disclosure notice, at no cost to insurers, to inform policyholders of certain life insurance policies of their rights and alternatives to lapsing or surrendering their policy. The notice must provide information on options like accelerated death benefits, assigning the policy as a gift, life settlement contracts, policy replacements, and loan collateralization. Insurers, agents, or both must provide this notice to policyholders aged 60 or older, or known to be terminally or chronically ill, in certain circumstances like a request to surrender or accelerate the policy or upon receiving a notice of potential lapse. Violations are considered unfair trade practices.

Business and Industry