STATEMENT OF PURPOSE
RS31148 / H0503
This legislation proposes an amendment to Chapter 18, Title 41 of the Idaho Code concerning the "Notice of
Lapse or Termination of Individual Life Insurance." It aims to grant the policy owner and any designated third
party the option, at no cost, to request that all lapsing life insurance policies receive a notice of lapse via certified
United States mail with return receipt, ten (10) days before the lapse takes effect. The responsibility for the
certified mailing costs would fall on the insurance company whenever a policy lapses due to non-payment,
termination, or the end of the term policy.
FISCAL NOTE
This legislation does not result in additional expenditure of funds at the state or local government level, nor
does it lead to an increase or decrease in revenue for state or local government; therefore, it has no fiscal
impact. There would be a fiscal impact on insurance companies for all lapsing policies due to non-payment or
termination of term life insurance policies. The cost of a certified item, along with the return receipt, ranges
from $6.72 to $8.15 per lapse.
Contact:
Kathy Peterson
(208) 850-3597
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/08/2024, 7:50 AM


Statutes affected:
Bill Text: 41-1830