OLR Bill Analysis

sHB 5226

AN ACT CONCERNING LIFE INSURANCE PREMIUM PAYMENT SCHEDULES FOR RETIREES.

SUMMARY:

This bill allows a retiree insured under a life insurance policy the option of electing a premium payment schedule. The retiree may choose at least quarterly, biannual, or annual payments.

EFFECTIVE DATE: October 1, 2012

PREMIUM PAYMENT SCHEDULES

Individual Life Insurance

The bill requires an insurer to allow a retiree who is insured under an individual life insurance policy or related rider, upon the retiree's request, to elect a premium payment schedule. The insurer must give the retiree the choice of at least a quarterly, biannual, or annual payment schedule.

Group Life Insurance

The bill requires a group policyholder to allow a retiree who (1) is insured under a group life insurance policy or related rider and (2) pays a portion of the premium, upon the retiree's request, to elect a premium payment schedule. The policyholder must give the retiree the choice of at least a quarterly, biannual, or annual payment schedule.

COMMITTEE ACTION

Insurance and Real Estate Committee

Joint Favorable Substitute