Rating: 0

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Bill Summary:

House Bill 265 modifies Idaho Code regarding life insurance policy lapse and termination notices. It allows policyholders with individual life insurance policies exceeding $50,000 in face value to request, in writing, that lapse or termination notices be sent via certified mail with return receipt. This notice must be sent at the insurer’s expense at least 10 days prior to the effective date of lapse or termination. The request must be made at least 90 days in advance, and the insurer is required to acknowledge receipt of that request in writing.

The bill also updates the effective applicability date to include all individual life insurance policies issued or in force on or after January 1, 2026. However, policies with monthly or more frequent premium payments remain exempt. Additionally, the bill reinforces existing provisions allowing policyholders to designate a secondary recipient for lapse notices and to update that designation at any time.

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Reason for Rating:

H0265 provides a narrow, consumer-initiated option that enhances communication between life insurance providers and policyholders without creating mandates or new government programs. It does not expand the size, cost, or scope of government, nor does it interfere with private enterprise in a substantial way. The notification mechanism is optional, limited in scope, and funded by insurers, not taxpayers.

Because the bill supports transparency and responsible consumer choice without violating principles of limited government, economic freedom, or individual liberty, it is appropriately rated as neutral (0) under the Idaho Republican Party Platform.