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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
881
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
INSURANCE;
AMENDING
SECTION
41
-
1830,
IDAHO
CODE,
TO
REVISE
PRO
-
2
VISIONS
REGARDING
NOTICE
OF
LAPSE
OR
TERMINATION
OF
INDIVIDUAL
LIFE
IN
-
3
SURANCE;
AND
PROVIDING
AN
EFFECTIVE
DATE.
4
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
5
SECTION
1.
That
Section
41
-
1830,
Idaho
Code,
be,
and
the
same
is
hereby
6
amended
to
read
as
follows:
7
41
-
1830.
NOTICE
OF
LAPSE
OR
TERMINATION
OF
INDIVIDUAL
LIFE
INSUR
-
8
ANCE.
(1)
Notwithstanding
the
provisions
of
section
41
-
1927,
Idaho
Code,
an
9
individual
life
insurance
policy
shall
not
be
issued
or
delivered
in
this
10
state
until
the
applicant
has
been
afforded
the
option
of
designating
one
(1)
1
1
person,
in
addition
to
the
applicant,
to
receive
notice
of
lapse
or
termina
-
12
tion
of
a
policy
for
nonpayment
of
premium.
13
(2)
A
designation
made
pursuant
to
subsection
(1)
of
this
section
shall
14
be
on
the
application
or
a
form
provided
by
the
insurer.
The
applicant
shall,
15
on
such
application
or
form,
provide
the
full
name
,
and
address
and
telephone
16
number
of
the
person
designated
to
receive
notice
of
lapse
or
termination
of
17
the
policy
for
nonpayment
of
premium.
18
(3)
The
insurer
shall
annually
notify
a
policy
owner
of
the
right
to:
19
(a)
Make
a
designation
pursuant
to
subsection
(1)
of
this
section;
20
(b)
Change
the
designee;
and
21
(c)
Update
the
contact
information
of
the
designee
.
;
and
22
(d)
Make
a
request
for
notice
by
certified
mail
or
commercial
delivery
23
service
at
a
potential
cost
to
the
policy
owner
not
to
exceed
forty
dol
-
24
lars
($40.00)
pursuant
to
subsection
(6)
of
this
section.
25
(4)
The
policy
owner
may,
at
the
policy
owner's
discretion,
change
the
26
designee
or
change
the
contact
information
of
the
designee
more
often
than
27
annually,
and
the
insurer
shall
make
available
the
form
for
such
changes
at
28
the
policy
owner's
request.
29
(5)
No
individual
life
insurance
policy
shall
lapse
or
be
terminated
30
for
nonpayment
of
premium
unless
the
insurer,
at
least
fourteen
(14)
sixty
31
(60)
days
prior
to
the
effective
date
of
the
lapse
or
termination,
sends
no
-
32
tice
by
first
-
class
United
States
mail
to
the
policy
owner
and
to
the
policy
33
owner's
designee,
if
a
designation
has
been
made
pursuant
to
this
section,
of
34
the
lapse
or
termination,
at
the
address
or
addresses
provided
by
the
policy
35
owner
for
purposes
of
receiving
such
notice.
36
(6)
In
addition
to
the
notice
required
pursuant
to
subsection
(5)
of
37
this
section,
the
policy
owner
of
an
individual
life
insurance
policy
issued
38
with
a
face
amount
in
excess
of
one
hundred
thousand
dollars
($100,000)
may
39
request
that
a
lapse
or
termination
notice
be
sent
by
United
States
postal
40
service
certified
mail,
return
receipt
requested,
or
by
a
commercial
deliv
-
41
2
ery
service
that
provides
written
or
electronic
proof
of
signature
required
1
delivery.
If
such
a
request
is
made:
2
(a)
The
request
must
be
made
to
the
insurer
in
writing
at
least
ninety
3
(90)
days
prior
to
a
lapse
or
termination;
4
(b)
The
insurer
shall
acknowledge
the
request
in
writing
to
the
policy
5
owner,
and
such
acknowledgement
shall
serve
as
verification
that
the
6
request
was
received;
7
(c)
The
notice
of
lapse
or
termination
shall
be
sent
at
least
sixty
(60)
8
days
prior
to
the
effective
date
of
the
lapse
or
termination
to
the
pol
-
9
icy
owner
and,
if
a
designation
has
been
made
pursuant
to
this
section,
10
to
the
policy
owner's
designee
at
the
address
or
addresses
provided
by
1
1
the
policy
owner
for
purposes
of
receiving
such
notice;
12
(d)
The
insurer
may
charge
the
policy
owner
the
actual
postage
and
de
-
13
livery
confirmation
cost
charged
by
the
carrier
for
sending
the
notice
14
by
certified
mail
or
commercial
delivery
service,
not
to
exceed
forty
15
dollars
($40.00),
and
such
amount
may
be
added
to
the
policy
owner's
16
next
premium
payment;
17
(e)
If
the
notice
sent
pursuant
to
this
subsection
is
undeliverable
or
18
refused,
the
insurer
shall
have
no
further
obligation
under
this
sub
-
19
section;
and
20
(f)
In
lieu
of
certified
mail
or
commercial
delivery
service,
an
in
-
21
surer
may
demonstrate
proof
of
delivery
for
a
lapse
or
termination
22
notice
the
insurer
sends
pursuant
to
this
subsection
by
other
methods
23
establishing
delivery
such
as
an
electronic
delivery
read
receipt,
24
provided
that
the
policy
owner
making
a
request
for
notice
by
certified
25
mail
or
commercial
delivery
service
is
notified
by
the
insurer
at
the
26
time
of
the
request
that
an
alternative
method
establishing
delivery
27
will
be
used.
28
(6)
(7)
The
provisions
of
this
section
shall
apply
prospectively
to
any
29
individual
life
insurance
policy
issued
or
in
force
on
or
after
January
1,
30
2018
2027
.
Provided
however,
that
the
provisions
of
this
section
do
not
ap
-
31
ply
to
any
life
insurance
policy
under
which
premiums
are
payable
monthly
or
32
more
frequently.
33
SECTION
2.
This
act
shall
be
in
full
force
and
effect
on
and
after
Jan
-
34
uary
1,
2027.
35