Implementation of Life Insurance Policyholder Notice Requirement

BULLETIN 370 Implementation of Life Insurance Policyholder Notice Requirement P.L. 2009, Chapter 376, “An Act To Provide Consumer Disclosures and Protect Consumer Options in Life Insurance,” took effective September 12, 2009. Among other provisions, this new law directs the Superintendent to develop an informational brochure to apprise consumers of their rights as owners of life insurance policies, and make the brochure available at no cost to all insurance companies and life insurance producers. Life insurers will be required to send copies of this brochure to all policyholders who have requested policy surrender or accelerated death benefits, or who have been notified that their policies may lapse, if the policyholder is aged 60 or older or is known to be terminally or chronically ill.1 The purpose of this Bulletin is to clarify the timing of the notice requirement. The requirement to develop an informational brochure is based on a similar requirement in a Washington law. In order to promote regulatory consistency and administrative efficiency, the Bureau intends to make the Maine informational brochure consistent, to the extent appropriate, with the publication currently under development in Washington. Insurers must begin providing copies of the informational brochure to the specified policyholders one month after the Bureau of Insurance publishes the brochure. Further notice will be provided when the brochure is finalized. 1 24-A M.R.S.A. § 6808-A(4). January 20, 2010 ______________________________________ Mila Kofman Superintendent of Insurance NOTE: This bulletin is intended solely for informational purposes. It is not intended to set forth legal rights, duties or privileges nor is it intended to provide legal advice. Readers should consult applicable statutes and rules and contact the Bureau of Insurance if additional information is needed.