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Bill

S 5130

Requires health and motor vehicle insurance policies to notify policyholders of cancellation, discontinuance or major changes to their policy via email

2025 Regular Session Introduced by Leroy Comrie

Bill S 5130 requires health and motor vehicle insurers to email policyholders about cancellations or major changes, ensuring timely updates for informed decisions.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · S 5130

Summary of Bill S 5130

Bill Information

  • Bill Number: S 5130
  • Title: Requires health and motor vehicle insurance policies to notify policyholders of cancellation, discontinuance or major changes to their policy via email
  • Status: Referred to Insurance Committee
  • Introduced: February 19, 2025
  • Classification: Bill

Purpose and Intent

Bill S 5130 aims to enhance communication between insurance providers and policyholders by mandating that health and motor vehicle insurance companies notify their customers of significant changes to their policies. This includes notifications regarding cancellations, discontinuances, or major alterations in coverage. The intent is to ensure that policyholders are kept informed about their insurance status, which can significantly impact their financial and health-related decisions.

Key Provisions

  • Notification Requirement: Insurance companies must send notifications via email to policyholders regarding:
    • Cancellations of policies
    • Discontinuance of coverage
    • Major changes to the terms of the policy
  • Timeliness of Notifications: The bill does not specify a timeline for when these notifications must be sent, but it emphasizes the importance of timely communication to allow policyholders to make informed decisions.

Affected Parties

  • Policyholders: Individuals holding health and motor vehicle insurance policies will benefit from increased transparency and timely updates regarding their insurance status.
  • Insurance Providers: Companies offering health and motor vehicle insurance will need to implement systems to ensure compliance with the new notification requirements, which may involve updates to their communication processes and technology.

Procedural Aspects

  • The bill was introduced on February 19, 2025, and has been referred to the Insurance Committee for further consideration.
  • This bill follows related legislation from prior sessions, including:
    • S 8885
    • S 4191
    • S 5545

These related bills may provide context or precedent for the current proposal, indicating ongoing legislative interest in improving insurance communication practices.

Conclusion

Bill S 5130 represents a significant step towards improving the communication between insurance providers and policyholders. By requiring email notifications for critical changes to insurance policies, the bill aims to empower consumers with the information they need to manage their insurance effectively. As it moves through the legislative process, stakeholders will be watching closely to see how it evolves and what implications it may have for the insurance industry and consumers alike.

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

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