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Bill

JB

Bill

S 955

Requires notice prior to lapse of life insurance policy due to nonpayment of premium.

2026-2027 Regular Session Introduced by Jon Bramnick

New Jersey bill requires life insurers to notify policyholders before coverage lapses due to unpaid premiums, preventing unintended policy terminations.

Introduced in the Senate, Referred to Senate Commerce Committee
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WeVote Research Nonpartisan
Bill Summary · S 955

Legislative bill overview

S 955 mandates that life insurance companies must provide notice to policyholders before their policies lapse due to unpaid premiums. The bill establishes a requirement for advance notification, giving customers an opportunity to pay outstanding premiums and maintain their coverage before the policy automatically terminates.

Why is this important

Life insurance lapses can have serious financial consequences for families who depend on death benefits for financial security. Many policyholders may miss premium payments due to oversight, financial hardship, or administrative error rather than intentional cancellation, making advance notice a practical protection mechanism. This policy addresses a gap where people could lose coverage without awareness, potentially leaving beneficiaries without expected protection.

Potential points of contention

  • Insurance company compliance costs: Insurers may argue that implementing additional notice procedures increases administrative burden and operational expenses, which could be passed to consumers through higher premiums
  • Notice timing and specificity: Disagreement may arise over how much advance notice is sufficient, what communication method is acceptable, and whether multiple notices are required
  • Applicability scope: Questions about whether the requirement applies equally to all policy types, premium payment frequencies, and situations (e.g., policies with grace periods already in place)

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

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