This bill aims to enhance protections for life insurance policyholders in Nebraska, particularly focusing on senior citizens. It mandates that life insurance issuers provide a notice of pending lapse and termination of policies at least thirty days prior to such actions, ensuring that any known assignee with an interest in the policy is informed. The bill also allows assignees to request notifications regarding premium defaults, which must be delivered electronically or by certified mail. Additionally, insurers can charge a nominal fee for this notification service, capped at $2.50 per notice.

Furthermore, the bill introduces provisions for senior citizens, defined as individuals aged 65 and older, allowing them to designate a third-party individual to receive notifications about their life insurance policy, including cancellation and nonrenewal notices. This designation process requires written notification to the insurer and includes an acceptance from the third-party designee. The bill emphasizes that such designation does not create any liability for the third-party and mandates that insurers inform senior citizens annually about this option. Overall, the legislation seeks to improve communication and support for vulnerable policyholders, particularly seniors.