STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator JON M. BRAMNICK
District 21 (Middlesex, Morris, Somerset and Union)
SYNOPSIS
Requires notice prior to lapse of life insurance policy due to nonpayment of premium.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning certain life insurance policies and supplementing chapter 25 of Title 17B of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An insurer shall give notice to the holder of a life insurance policy, and to any producer of record on that policy, that the policy will lapse due to nonpayment of premium not less than 10 days before the lapse of that policy.
b. The notice required by this section shall be accomplished by regular mail, electronic mail, and telephone to the holder of the life insurance policy and any producer of record, as appropriate, based on information provided by the insured and the producer and on record with the insurer.
c. The notice required by this section shall be in addition to any other notice concerning nonpayment of premium or lapse of the life insurance policy required under the terms of the policy.
2. This act shall take effect on the 90th day next following enactment and shall apply to policies of life insurance issued on or after that date.
STATEMENT
This bill requires an insurer to provide notice to the holder of an individual life insurance policy, and any producer of record on that policy, that the policy will lapse due to nonpayment of premium. The notice must be provided to the holder and any producer of record at least 10 days prior to the lapse of the policy and shall be accomplished by regular mail, electronic mail, and telephone to the holder of the life insurance policy and any producer of record, as appropriate, based on information provided by the insured and the producer and on record with the insurer. The notice required by the bill shall be in addition to any other notice concerning nonpayment of premium or lapse of the life insurance policy required under the terms of the policy.