An Act To Require Proper Notification of Life Insurance Cancellation
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §2556, sub-§1, as enacted by PL 2007, c. 40, §1, is amended to read:
1. Notice to 3rd party. An individual life insurance policy that has been in force for at least one year may not be terminated for nonpayment of premium unless, at least 21 days prior to the expiration of the grace period, the insurer has mailed by registered mail a notice of cancellation to the policyholder and any 3rd party designated by the policyholder by name and address in writing. The bureau shall adopt rules to implement the notice requirements under this subsection.
summary
This bill requires insurers to provide notice of the lapse or termination of a life insurance policy by registered mail.