This bill amends Section 41-1830 of the Idaho Code to enhance the notice requirements for the lapse or termination of individual life insurance policies due to nonpayment of premiums. Key changes include the requirement for insurers to allow applicants to designate an additional person to receive notice of policy lapse or termination, with the designation to be included on the application form. Insurers are also mandated to notify policy owners annually about their rights to designate or change the designee, update contact information, and request notice by certified mail or commercial delivery service, with a potential cost not exceeding $40.

Furthermore, the bill extends the notice period for policy lapse or termination from 14 days to 60 days prior to the effective date. It introduces provisions for policy owners of life insurance policies with a face amount exceeding $100,000 to request certified mail or commercial delivery for lapse or termination notices, detailing the process and associated costs. The amendments will take effect on January 1, 2027, and will apply to any individual life insurance policy issued or in force from that date onward, excluding policies with monthly or more frequent premium payments.

Statutes affected:
Bill Text: 41-1830