SB 1320

Bill Subjects

Abstract

Existing law generally regulates classes of insurance, including life insurance. Existing law requires a life insurance policy, including an individual or group policy, issued or delivered in this state to contain a provision for a grace period of not less than 60 days from the premium due date and to provide that the policy remains in force during that grace period. Existing law requires an insurer to give an applicant for an individual life insurance policy the right to designate at least one person, in addition to the applicant, to receive notice of lapse or termination of a policy for nonpayment of premium. Existing law prohibits a notice of pending lapse and termination of an individual life insurance policy from being effective unless mailed by the insurer to the named policy owner and their designee at least 30 days before the effective date of termination if termination is for nonpayment of premium. This bill would prohibit an insurer from being liable for failure to comply with the these requirements, unless failure to comply with these provisions results in an alleged policy lapse.