Prevents unintentional lapses and cancellations of life insurance policies by requiring insurers to notify a designated third party.
The bill mandates that insurers notify a designated third party of any lapse or cancellation of an individual life insurance policy due to nonpayment of premium. Insurers must inform the policyholder and the designated third party of the policy's termination and the right to reinstate it. The notice must be sent to the policyholder's last known address and the designated third party.
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