HB79 Alabama 2011 Session

Updated Jul 26, 2021

Summary

Primary Sponsor: Gregory Canfield
Republican
Co-Sponsors: Joe Faust Greg Wren K.L. Brown
Session: Regular Session 2011
Title: Insurance companies, insureds 60 years of age or older or who have terminal or chronic illness required to be notified of options regarding life insurance policy in lieu of allowing policy to lapse, civil penalties, Life Insurance Consumer Disclosure Act
Description: Under existing law, life insurers are not required to notify policy owners of the option to sell their policy instead of allowing it to lapse without value.
This bill would provide that insurance companies must notify insureds who are 60 years old and older or individuals suffering from a terminal or chronic illness of their options regarding a life insurance policy instead of allowing it to lapse.
This bill would require insurance companies to provide notice to its insureds of options in lieu of lapsing including life settlements, accelerated death benefits, and conversion to long-term care policies.
This bill would provide for a civil penalty if the notice is not provided.
Subjects: Insurance Companies

Read for the first time and referred to the House of Representatives committee on Insurance