- District 28
Existing law requires an insurer to comply with certain procedures relating to the cancellation, lapse, or termination of an insurance policy. Existing law requires, with respect to specified insurance policies that cover loss of or damage to real property, loss of or damage to personal property, and legal liability of a natural person, a notice of cancellation for nonpayment of premiums to be given at least 10 calendar days prior to the effective date of the cancellation. This bill, with respect to a policy described above that provides insurance coverage in an amount of $100,000 or more, would require a notice of cancellation for nonpayment of premiums to be sent by certified mail to the named insured and to any other person designated by the named insured to receive that notice. Existing law, which became effective January 1, 2013, prohibits an individual life insurance policy from being issued or delivered in this state until the applicant has been given 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. This bill would require, for an individual life insurance policy issued prior to January 1, 2013, an insurer to send a notice to a policy owner, on or before January 31, 2022, informing the policy owner of 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. The bill would require the insurer to include with the notice a specified form for the policy owner to make that designation. Existing law prohibits an individual life insurance policy from lapsing or being terminated for nonpayment of premium unless the insurer, at least 30 days prior to the effective date of the lapse or termination, gives notice to the policy owner and to the person or persons designated. Existing law requires that notice to be given by first-class United States mail within 30 days after a premium is due and unpaid. This bill, instead, would require that notice to be given by certified mail.
No votes to display
Read first time.
From printer. May be heard in committee March 22.
Introduced. To print.
|Bill Text Versions||Format|
|02/19/21 - Introduced|
|No related documents.|
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