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H 1094

An Act relative to notifying broker prior to termination of coverage

194th Legislature (2025-2026) Introduced by Donnie Berthiaume and 4 co-sponsors

Insurers must notify the agent of record at least 21 days before lapse of life, disability, or long-term care policies, with exceptions; notice does not make the agent liable.

Bill reported favorably by committee and referred to the committee on House Steering, Policy and Scheduling
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Bill Summary · H 1094

Summary: H.1094 — An Act relative to notifying broker prior to termination of coverage

Overview

H.1094, titled “An Act relative to notifying broker prior to termination of coverage,” proposes to amend Chapter 175 of the General Laws by adding a new Section 231. The core aim is to require insurers to notify an agent of record if the insured’s policy (life, disability, or long-term care) is approaching lapse, and to provide the broker with advance notice of at least 21 days before the lapse becomes effective. The bill clarifies that receiving such notice does not render the agent responsible for the lapse, and it sets out several exceptions where notice to the broker is not required.

Key Provisions

  • New requirement (Section 231): If the policy owner has an agent of record, the insurer must notify the agent of the impending lapse or mail/email a copy of the lapse notice to the agent at least 21 days before the lapse’s effective date.
  • Notice methods: Notification can be mailed or sent electronically to the agent.
  • Non-liability for agents: Receipt of notice to the broker does not make the broker responsible for the lapse.
  • Exceptions (insurer not required to notify the broker if any of the following apply):
    • (a) The insurer maintains an online system that pushes a pending-lapse notice to the broker of record, allowing independent determination of lapse.
    • (b) The insurer has a procedure that pushes out a notice enabling the agent to independently verify whether the insured received the lapse notice.
    • (c) The insurer has no record of the current agent of record.
    • (d) The agent is employed by the insurer or an affiliate of the insurer.

Affected Parties and Practical Impact

  • Policy owners: Life, disability, and long-term care policyholders with an agent of record stand to benefit from earlier broker awareness of potential lapses.
  • Agents of record / brokers: Would receive advance notices, enabling proactive outreach to insureds to prevent lapses.
  • Insurers and affiliates: Would incur an additional notification responsibility, with specified exceptions that may reduce burden in certain systems or relationships.
  • Regulatory impact: Adds a consumer-protection-type notification requirement to lapse processes in specified lines of coverage.

Timeline and Legislative Status

  • Introduced: February 27, 2025.
  • Filed/House Docket: House No. 1094 (House Docket No. 3263); filed January 17, 2025.
  • Referral: Referred to the Committee on Financial Services (February 27, 2025).
  • Hearing: Scheduled for November 4, 2025, from 10:30 AM to 1:30 PM in hearing room A-2.
  • Legislative actions listed: Related entry indicates Senate concurrence occurred; related bill reference HD 3263 (replaces).

Related Bills

  • HD 3263 (replaces) — the companion or engrossed version associated with this measure.

Notes on Scope and Effectiveness

  • The bill specifies no explicit effective date within the text provided; implementation would generally follow passage and any specified regulatory rules or subsequent phase-in guidance.
  • The provisions emphasize broker notification timing (21 days) and include practical exemptions to accommodate existing broker-management systems and insurer-employee structures.

Bottom Line

H.1094 proposes a straightforward, enforceable duty on insurers to alert brokers of record about impending policy lapses at least 21 days in advance for certain types of life-continuity coverage, with clearly defined exceptions. The intent is to enhance coordination between insurers, brokers, and insureds to reduce unintended lapses and improve continuity of coverage.

Compiled from official sources — confirm details with the bill’s official record.

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