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Bill

Bill

A 854

Relates to replacement of individual life insurance policies or annuity contracts

2025 Regular Session Introduced by Phil Steck

Bill A 854 enhances consumer protections for life insurance policy replacements, requiring clear disclosures and training for agents to ensure informed decisions.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · A 854

Summary of Bill A 854

Bill Information

  • Bill Number: A 854
  • Title: Relates to replacement of individual life insurance policies or annuity contracts
  • Status: Referred to Insurance Committee
  • Introduced On: January 08, 2025
  • Classification: Bill

Purpose and Intent

Bill A 854 aims to establish clearer regulations and guidelines surrounding the replacement of individual life insurance policies and annuity contracts. The intent is to protect consumers from potential pitfalls associated with replacing existing policies, ensuring they are fully informed about the implications of such actions.

Key Provisions

While the specific text of the bill is not provided, typical provisions in similar legislation may include:

  • Disclosure Requirements: Insurers may be required to provide detailed information to policyholders about the benefits and drawbacks of replacing their current policies with new ones.
  • Cooling-Off Period: The bill could introduce a mandatory waiting period during which policyholders can reconsider their decision to replace a policy.
  • Consumer Protections: Enhanced protections for consumers to prevent misleading practices by insurance agents or companies when discussing policy replacements.
  • Training for Agents: Requirements for insurance agents to undergo training on the implications of policy replacements to ensure they provide accurate and comprehensive advice to clients.

Who Would Be Affected

  • Consumers: Individuals considering the replacement of their life insurance policies or annuity contracts would benefit from increased transparency and protection.
  • Insurance Agents: Agents may need to adapt their practices and undergo additional training to comply with the new regulations.
  • Insurance Companies: Insurers would have to implement new procedures and disclosures, potentially affecting their operational processes.

Procedural Aspects

  • The bill was introduced on January 08, 2025, and has been referred to the Insurance Committee for further consideration. The timeline for further legislative action will depend on the committee's schedule and subsequent votes.

Related Bills

  • S 5238: Companion bill in the Senate.
  • S 1170, S 3065, S 5024, S 708, S 3502, A 9688, A 4434: Prior-session bills that may have addressed similar issues or concepts related to insurance policy replacements.

This summary provides an overview of Bill A 854, highlighting its purpose, key provisions, and potential impacts on consumers and the insurance industry. As the bill progresses through the legislative process, further details may emerge that will clarify its specific provisions and implications.

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

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