This bill amends Section 41-1830 of the Idaho Code concerning the notice requirements for the lapse or termination of individual life insurance policies. It introduces a provision allowing policy owners of individual life insurance policies with a face amount exceeding $50,000 to request that lapse or termination notices be sent via certified mail, return receipt requested. The request must be made in writing at least 90 days prior to the lapse or termination, and the insurer is required to acknowledge the request in writing. The certified mail notice must be sent at the insurer's expense at least 10 days before the effective date of the lapse or termination. Additionally, the bill clarifies that no policy shall lapse or terminate for nonpayment of premium unless the insurer provides notice by first-class mail to both the policy owner and any designated recipient.

The bill also makes a technical correction regarding the applicability of these provisions, changing the effective date for the application of these rules from January 1, 2018, to January 1, 2026. It specifies that the provisions do not apply to life insurance policies with premiums payable monthly or more frequently. An emergency clause is included, declaring that the act will take effect on July 1, 2025.

Statutes affected:
Bill Text: 41-1830