WashingtonLife insurers must warn before certain policies end, starting in 2027
Insurers must warn before unpaid premiums end individual life policies issued on or after January 1, 2027, except those billed monthly or more often and term policies lasting one year or less.
What it does
For individual life policies issued on or after January 1, 2027, insurers must give 30 days' warning before unpaid premiums end coverage. Policies billed monthly or more often and term policies lasting one year or less are excluded.
People buying individual life policies issued on or after January 1, 2027, can name a contact to receive missed-payment warnings. Policies billed monthly or more often and terms of one year or less are excluded. Contacts need not act.
Argument forWarnings to policyholders and their chosen contacts could help people catch missed payments before covered policies end.
Argument againstInsurers could face extra administrative work because they must document delivery of each required warning and show proof on request.
More detail
Insurers must send written warnings at least 30 days before coverage ends for unpaid premiums. They must obtain proof of delivery and show it on request. Warnings go to the individual policyholder's last known address and any designated contact. Group life insurance is excluded. Policies with premiums due monthly or more often and term policies lasting one year or less are excluded. The law takes effect January 1, 2027, and applies only to policies issued on or after that date.
Insurers must explain the contact option in writing when someone applies. Applicants can name a contact then or while the policy remains active by sending the insurer the contact's name and address in writing. The contact option covers individual life insurance policies delivered or issued for delivery in Washington. Group policies, policies with premiums due monthly or more often, and term policies lasting one year or less are excluded. Naming a contact creates no duty or liability for that contact to pass on warnings, pay premiums, or compensate anyone if coverage ends. Naming a contact does not make the insurer liable to that contact for failing to send notice. The contact provisions apply only to policies issued on or after January 1, 2027.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 16Effective date 1/1/2027.Latest
- Mar 16Chapter 62, 2026 Laws.Major
- Mar 16Governor Bob Ferguson signed.Became Law
- Mar 6Delivered to Governor.To Governor
- Mar 6President signed.Passed Senate
- Mar 5Speaker signed.Passed House
- Mar 4Third reading, passed; yeas, 48; nays, 0; absent, 0; excused, 1.Minor
- Vote recorded 3rd Reading & Final Passage (#10). Result: pass.Upper
- Mar 4Rules suspended. Placed on Third Reading.Minor
- Feb 27Placed on second reading by Rules Committee.Minor
- Feb 20Passed to Rules Committee for second reading.
- Feb 19BTE - Majority; do pass.Minor
- Feb 19Executive action taken in the Senate Committee on Business, Trade & Economic Development at 8:00 AM.
- Feb 18Public hearing in the Senate Committee on Business, Trade & Economic Development at 8:00 AM.
- Feb 16First reading, referred to Business, Trade & Economic Development.Minor
- Feb 12Third reading, passed; yeas, 94; nays, 0; absent, 0; excused, 4.Minor
- Vote recorded 3rd Reading & Final Passage (#6). Result: pass.Lower
- Feb 12Rules suspended. Placed on Third Reading.Minor
- Feb 121st substitute bill substituted (CPB 26).Major
- Feb 11Rules Committee relieved of further consideration. Placed on second reading.Minor
- Feb 4Referred to Rules 2 Review.Minor
- Feb 4CPB - Majority; 1st substitute bill be substituted, do pass.Major
- Feb 4Executive action taken in the House Committee on Consumer Protection & Business at 1:30 PM.
- Jan 23Public hearing in the House Committee on Consumer Protection & Business at 8:00 AM.
- Jan 13First reading, referred to Consumer Protection & Business.Introduced
Consumer Protection