§ 27-4-30. Unintentional policy lapse.
(a) Each insurer that delivers, or issues for delivery, an individual life insurance policy
in this state on or after January 1, 2017, shall notify an applicant, in writing at
the time of application for such policy, of such applicant's right to designate a
third party to receive notice of cancellation of the policy based on nonpayment of
premium. The applicant may make such designation at the time of application for such
policy, or at any time such policy is in force, by submitting a written notice to
the insurer containing the name and address of the third-party designee.
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§ 27-4-30. Unintentional policy lapse.
(a) Each insurer that delivers, or issues for delivery, an individual life insurance policy
in this state on or after January 1, 2017, shall notify an applicant, in writing at
the time of application for such policy, of such applicant's right to designate a
third party to receive notice of cancellation of the policy based on nonpayment of
premium. The applicant may make such designation at the time of application for such
policy, or at any time such policy is in force, by submitting a written notice to
the insurer containing the name and address of the third-party designee.
(b) The insurer's transmission to the third-party designee of a copy of a notice of cancellation
based on nonpayment of premium shall be in addition to the transmission of the original
notice to the policyholder. The copy of the notice of cancellation transmitted to
the third party shall be governed by the same law and policy provisions that govern
the notice being transmitted to the policyholder.
(c) The designation of a third party shall not constitute acceptance of any liability
on the part of the third party or insurer for services provided to the policyholder.