Six states already require special disclosures for consumers who are about to give up a policy
The Florida legislature recently passed H.B. 1007, a comprehensive bill intended to combat insurance fraud. One important provision of the bill requires that insurance consumers be advised of their options before making changes to a life insurancepolicy. The new law now awaits the governor’s signature or, unless vetoed, automatically becomes law 15 days after it was sent to the governor’s desk.
Specifically, the bill requires life insurers to “provide an individual life insurance policyholder with a statement informing him or her that if he or she is considering making changes in the status of his or her policy, he or she should consult with a licensed insurance or financial advisor. The statement may accompany or be included in notices or mailings otherwise provided to the policyholder.” In addition, the “statement must also advise the policyholder that he or she may contact the department for more information and include a website address or other location or manner by which the policyholder may contact the department.”This article was originally featured on ThinkAdvisor.com