Bill Text: CT SB00201 | 2014 | General Assembly | Introduced
Bill Title: An Act Concerning Cancellation Notices Of Individual Life Insurance Policies.
Spectrum: Slight Partisan Bill (Democrat 7-2-1)
Status: (Passed) 2014-06-06 - Signed by the Governor [SB00201 Detail]
Download: Connecticut-2014-SB00201-Introduced.html
General Assembly |
Raised Bill No. 201 | ||
February Session, 2014 |
LCO No. 769 | ||
*00769_______INS* | |||
Referred to Committee on INSURANCE AND REAL ESTATE |
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Introduced by: |
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(INS) |
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AN ACT CONCERNING CANCELLATION NOTICES OF INDIVIDUAL LIFE INSURANCE POLICIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective January 1, 2015) (a) An applicant for an individual life insurance policy shall have the right to designate a third party to receive notice of cancellation of the policy based on nonpayment of premium.
(b) Each insurer that delivers or issues for delivery an individual life insurance policy in this state shall notify any applicant who applies for such policy on or after January 1, 2015, in writing at the time of application, of such right. The applicant may make such designation at the time of application for such policy or at any time such policy is in force by submitting a written notice to the insurer that contains the name and address of the third-party designee.
(c) (1) No such designation shall be effective unless such third-party designee or applicant or policyholder has submitted a written acceptance by the third-party designee to receive copies of notices of cancellations from the insurer on behalf of the applicant or policyholder. The third-party designation shall be effective not later than ten business days after the date the insurer receives such written acceptance.
(2) The third-party designee may terminate such third-party designation by providing written notice to the insurer and the policyholder. The policyholder may terminate such third-party designation by providing written notice to the insurer and the third party.
(d) (1) If a third party has been designated and has accepted such designation, the insurer shall provide notice of cancellation based on nonpayment of premium to the third-party designee in addition to the policyholder, at the same time such notice is provided to the policyholder.
(2) No notice of cancellation based on nonpayment of premium shall be effective unless sent by the insurer, by registered or certified mail or by mail evidenced by a certificate of mailing, to the named insured and to any third-party designee, at least ten days before the effective date of cancellation and accompanied by the reason for cancellation, except that where cancellation is for nonpayment of the first premium on a new policy, at least fifteen days' notice of cancellation accompanied by the reason for cancellation shall be given.
(e) The designation of a third party shall not constitute acceptance of any liability on the part of the third party or the insurer for services provided to the policyholder.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
January 1, 2015 |
New section |
Statement of Purpose:
To allow an applicant for or policyholder of an individual life insurance policy to designate a third party to receive notice of cancellation for nonpayment of premium from the insurer.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]