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Bill

A 7689

Prohibits insurers from cancelling life insurance policies where certain medical information is provided to the insurer at the time of application

2025 Regular Session Introduced by Rodneyse Bichotte Hermelyn and 15 co-sponsors

Bill A 7689 protects consumers by preventing life insurers from canceling policies based on disclosed medical information, ensuring coverage stability for applicants.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · A 7689

Summary of Bill A 7689

Bill Number: A 7689
Title: Prohibits insurers from cancelling life insurance policies where certain medical information is provided to the insurer at the time of application
Status: Referred to Insurance
Introduced: April 04, 2025
Classification: Bill

Purpose and Intent

Bill A 7689 aims to enhance consumer protection in the life insurance market by preventing insurers from canceling life insurance policies based on medical information disclosed at the time of application. The intent is to ensure that individuals who provide accurate and complete medical histories are not penalized by losing their coverage due to subsequent health developments.

Key Provisions

  • Prohibition on Cancellation: The bill specifically prohibits life insurance companies from canceling policies if the insured has provided certain medical information during the application process.
  • Disclosure Requirements: Insurers must adhere to the information disclosed by applicants, meaning they cannot retroactively use undisclosed medical conditions to void a policy.
  • Consumer Rights: The legislation reinforces the rights of consumers to maintain their life insurance coverage, fostering a fairer insurance environment.

Affected Parties

  • Insurers: Life insurance companies will need to adjust their policies and practices to comply with the new regulations, which may impact their risk assessment and underwriting processes.
  • Consumers: Individuals applying for life insurance will benefit from increased security and peace of mind, knowing that their coverage cannot be easily revoked based on disclosed medical information.

Procedural Aspects

  • Legislative Action: As of April 4, 2025, the bill has been referred to the Insurance Committee for further consideration. This step is crucial for the bill's advancement through the legislative process.
  • Related Bills: A 7689 is part of a broader legislative context, with several related bills from prior sessions (A 6013, A 5638, A 1858, A 3343, A 2906, A 2063, A 4542, A 3420, A 5998) that may address similar issues in the insurance sector.

Conclusion

Bill A 7689 represents a significant step towards protecting consumers in the life insurance market by ensuring that individuals are not unfairly penalized for their medical history. By prohibiting the cancellation of policies based on disclosed medical information, the bill seeks to create a more equitable insurance landscape. The next steps involve committee review and potential amendments before further legislative action can be taken.

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

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