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Bill

S 826

An Act relative to notifying broker prior to termination of coverage

194th Legislature (2025-2026) Introduced by Paul McMurtry and 1 co-sponsor

Requires insurers to notify insurance brokers before terminating or non-renewing client coverage, enabling brokers to advocate for policyholders and arrange alternatives.

Bill reported favorably by committee and referred to the committee on Senate Ways and Means
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Bill Summary · S 826

Legislative bill overview

S 826 requires insurance companies to notify licensed insurance brokers before terminating or non-renewing client coverage policies. The bill establishes a procedural requirement that brokers receive advance notice alongside or before policyholder notification, ensuring brokers can advocate for their clients or arrange alternative coverage.

Why is this important

Insurance brokers serve as intermediaries helping clients find appropriate coverage, and advance notification allows them to intervene on behalf of clients, potentially preventing coverage gaps or securing better alternatives. Without this requirement, clients could lose coverage without their broker's knowledge or ability to assist, disrupting the broker's role as their agent and potentially leaving clients exposed.

Potential points of contention

  • Operational burden on insurers: Requiring dual notifications (broker and policyholder) creates administrative complexity and potential cost increases for insurance companies
  • Broker incentive structures: Critics may argue brokers have financial incentives to influence policy renewals or replacements, raising questions about whether advance notice primarily benefits brokers rather than consumers
  • Timeline feasibility: Defining "prior" notification timing could create disputes—how far in advance must insurers notify brokers, and does this extend timelines for policy terminations?

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

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