Bill Description: House Bill 265 would require insurers to notify the owner of a life insurance policy when it lapses or terminates and to do so via certified mail, return receipt requested, under certain circumstances.
Rating: -1
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
House Bill 265 would amend Section 41-1830, Idaho Code, to add a new subsection requiring insurers to provide notice of a life insurance policy's lapse or termination via certified mail, return receipt requested, if the policy has a face value greater than $50,000 and the policyholder requests such notifications.
It says, "The certified mail lapse or termination notice shall be sent at the insurer's expense at least ten (10) days prior to the effective date of the lapse or termination to the policy owner and to the policy owner's designee."
As with so many regulations, this is government trying to micromanage matters that the free market has already resolved. Increasingly, customers have the option of digital notifications of financial matters, and those who don't want that option can choose physical disclosures. If a customer doesn't like his or her insurer's terms and conditions, there are many competitive options available.
(-1)
