Amends existing law to provide that certain policy owners may request additional notice of lapse or termination by certified mail.

This legislation proposes an amendment to Chapter 18, Title 41 of the Idaho Code concerning the “Notice of Lapse or Termination of Individual Life Insurance". It limits the new notice requirements to Life Insurance Policies greater than $50,000. This section of code already excludes notification requirements for lapse or termination to policies that are monthly or more frequent payment plans. This legislation requires the insured to notify the insurer at least 90 days prior to the potential lapse or termination of the desire to receive notice by United States postal service certified, return receipt requested. The certified return receipt notice must be sent at least 10 days prior to the lapse or termination to the policy owner and to the policy owner’s designee. The $50,000 Policy minimum with the exclusion of monthly payment plans will establish a somewhat de minimus requirement on insurers. Many major insurance companies are already required to process such a certified mail notice as required in other states.