WeVote
Log In

Bill

Bill

S 826

Requires consultation with tribal nations as part of the state budget process

2025 Regular Session Introduced by Rachel May

Insurers must notify the policyholder’s broker at least 21 days before a lapse in life, disability, or long-term care coverage, with exceptions.

REFERRED TO FINANCE
0
WeVote Research Nonpartisan
Bill Summary · S 826

Summary — S 826: Notice to Broker Prior to Termination of Coverage

Status (as filed): Introduced January 14, 2025; referred to committee(s) (see Procedural/Timeline below for conflicting entries).

Note on metadata: The file materials provided contain inconsistent metadata (alternate titles, sponsors, and multiple committee referrals). This summary focuses on the bill text filed as “An Act relative to notifying broker prior to termination of coverage” (Senate No. 826). Readers should confirm final status and text on the official Massachusetts legislative website.

Purpose

To require insurers to notify a policyholder’s agent (broker) of record before a life, disability, or long‑term care insurance policy lapses, giving brokers advance notice to assist policyholders and help prevent unintended loss of coverage.

Key provisions

  • Adds a new section to Chapter 175 (Massachusetts General Laws).
  • When a policy owner of a life, disability, or long‑term care policy has an agent of record, the insurer must notify that agent of an impending lapse or send the agent a copy of the notice of impending lapse.
  • Timing requirement: the notice must be delivered (mailed or sent electronically) at least 21 days before the effective date of any lapse in coverage.
  • Receipt of the notice does not make the agent responsible for the lapse (the agent is not liable solely because they received notice).
  • Four exceptions where the insurer is not required to provide the agent notice: a. The insurer has an online system that proactively notifies the broker of pending lapses so the broker can independently determine impending lapse.
    b. The insurer has a procedure that pushes a notice allowing the agent to check whether the insured received a lapse notice.
    c. The insurer has no record of a current agent of record.
    d. The agent is employed by the insurer or an affiliate.

Who would be affected

  • Insurers writing life, disability, and long‑term care policies in Massachusetts — new notification obligation (subject to exceptions).
  • Agents/brokers of record — receive advance notice (or copy) of impending policy lapses.
  • Policyholders — likely benefit from an added communication channel to prevent unintended lapses.
  • Potential modest operational/IT burden on insurers to implement or document notification workflows.

Potential impact

  • Could reduce unintended policy lapses and gaps in coverage by enabling brokers to intervene.
  • Clarifies that receiving notice does not create additional agent liability.
  • May impose administrative costs on insurers lacking notification systems; insurers with existing automated systems fall within exceptions.

Procedural / Timeline (conflicting entries present)

Provided legislative actions include: introduced 1/14/2025; read twice; referred to committees (entries list Finance; Financial Services; Health, Education, Labor, and Pensions); hearing scheduled 11/04/2025. Petitioners listed on the bill text: Michael F. Rush and Paul McMurtry. Other supplied metadata lists different sponsors (Rick Scott, Rachel May) and related bills — these appear inconsistent with the filed bill text. Verify current status and official text on the Massachusetts Legislature website before relying on this summary.

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

Sign in to ask a question.