House Bill No. 751, introduced by Representative Taylor, mandates that insurers or producers of term life insurance policies provide applicants with a detailed disclosure notice before the execution of any application or enrollment form. This disclosure must be a standalone document that includes critical information such as the total face amount of coverage, the duration of the policy, the cost of premiums, and any renewal options available at the end of the term. The applicant is required to initial each line of the disclosure and sign it, acknowledging receipt. The bill also specifies that if the application is conducted electronically, the disclosure must be presented on a separate electronic page.

Additionally, the bill establishes penalties for failing to provide the required disclosure, classifying such failures as unfair trade practices. It allows the insured a 30-day period to cancel the policy and receive a full refund of premiums if the disclosure is not provided prior to signing. The commissioner of insurance is granted rulemaking authority to enforce these provisions and may suspend or revoke the licenses of violators. Overall, the bill aims to enhance transparency and protect consumers in the term life insurance market.