Notice Of Lapse Or Termination Of Individual Life Insurance

TITLE 41 INSURANCE CHAPTER 18 THE INSURANCE CONTRACT 41-1830. notice of lapse or termination of individual life insurance. (1) Notwithstanding the provisions of section 41-1927 , Idaho Code, an individual life insurance policy shall not be issued or delivered in this state until the applicant has been afforded the option of designating one (1) person, in addition to the applicant, to receive notice of lapse or termination of a policy for nonpayment of premium. (2)  A designation made pursuant to subsection (1) of this section shall be on a form provided by the insurer. The applicant shall, on such form, provide the full name, address and telephone number of the person designated to receive notice of lapse or termination of the policy for nonpayment of premium. (3)  The insurer shall annually notify a policy owner of the right to: (a)  Make a designation pursuant to subsection (1) of this section; (b)  Change the designee; and (c)  Update the contact information of the designee. (4)  The policy owner may, at the policy owner’s discretion, change the designee or change the contact information of the designee more often than annually, and the insurer shall make available the form for such changes at the policy owner’s request. (5)  No individual life insurance policy shall lapse or be terminated for nonpayment of premium unless the insurer, at least fourteen (14) days prior to the effective date of the lapse or termination, sends notice by first-class United States mail to the policy owner and to the policy owner’s designee, if a designation has been made pursuant to this section, of the lapse or termination, at the address or addresses provided by the policy owner for purposes of receiving such notice. (6)  The provisions of this section shall apply to any individual life insurance policy issued or in force on or after January 1, 2018. Provided however, that the provisions of this section do not apply to any life insurance policy under which premiums are payable monthly or more frequently.