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SD 623

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 brokers before terminating policyholder coverage, giving brokers opportunity to intervene or assist clients.

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WeVote Research Nonpartisan
Bill Summary · SD 623

Legislative bill overview

SD 623 requires insurers to notify insurance brokers before terminating a policyholder's coverage. The bill establishes a procedural requirement that brokers receive advance notice concurrent with or before any coverage termination. This applies to various types of insurance policies handled through broker intermediaries.

Why is this important

Insurance brokers serve as intermediaries between clients and insurers, and early notification allows brokers to help clients understand termination reasons, explore alternative coverage options, or appeal decisions. Without this requirement, policyholders and their brokers may face coverage gaps or disruptions without adequate time to respond. The requirement protects both consumers and the brokers' business relationships.

Potential points of contention

  • Administrative burden: Insurers may argue that notifying multiple parties (policyholder and broker simultaneously) creates operational complexity and costs that could be passed to consumers
  • Scope ambiguity: The bill's definition of which policies and termination types are covered could be unclear, creating compliance uncertainty for insurers
  • Broker conflict: Some might question whether brokers have financial incentives that could conflict with objective consumer advice when they're notified of terminations

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

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