HB79 Alabama 2011 Session
In Committee
Bill Summary
Sponsors
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
<p class="bill_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</p><p class="bill_description">
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</p><p class="bill_description">
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</p><p class="bill_description">
This bill would provide for a civil penalty
if the notice is not provided</p><p class="bill_entitled_an_act"> To 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; to require the 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; and to provide for a civil penalty if
the notice is not provided.
</p>
Subjects
Insurance Companies
Bill Actions
| Action Date | Chamber | Action |
|---|---|---|
| March 1, 2011 | Read for the first time and referred to the House of Representatives committee on Insurance |
Bill Text
Bill Documents
| Type | Link |
|---|---|
| Bill Text | HB79 Alabama 2011 Session - Introduced |