Has Your Life Insurance Lapsed?
Life insurance companies would have to give notice before canceling a policy for nonpayment under bipartisan legislation sponsored by Assembly Republican Leader Jon Bramnick. The bill was approved this morning by the Assembly Financial Institutions and Insurance Committee.
“We can spare grieving families further stress and financial hardship by requiring life insurers to give notice before a policy lapses,” says Bramnick.
The Assembly GOP Leader says he introduced the measure after meeting a constituent who learned her husband’s policy had lapsed for nonpayment of premiums after he died from an illness.
“Policy holders deserve a good-faith warning before their life insurance lapses, not after it’s too late to do anything about it,” explains Bramnick. “Insurance companies can go the extra mile to make sure that their customers remain eligible for the coverage they have been investing in and counting on.”
The proposal requires life insurance companies to notify both the policy holder and agent at least 10 days before a lapse for nonpayment of premiums. The notice would have to be sent via regular mail, email and telephone.