NOTE: The governor signed this measure on 3/27/2014.
      
      
      HOUSE BILL 14-1082
      
      
      BY REPRESENTATIVE(S) Lee, Becker, Buckner, Exum, Ginal, Hamner,
      Hullinghorst, Kagan, Labuda, Pettersen, Primavera, Rosenthal, Salazar,
      Tyler, Williams, Young;
      also SENATOR(S) Tochtrop.
      
      
      Concerning a requirement for written notice of cancellation of
           individual life insurance policies, and in connection
           therewith, requiring written notice prior to the lapse of
           individual life insurance policies.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, add 10-7-105.5 as
      follows:
      
           10-7-105.5.  Lapse of life insurance policy - notice - affidavit of
      mailing or electronic transmission - legislative declaration. (1)  The
      general assembly finds, determines, and declares that it is
      beneficial to citizens of this state for life insurers, prior to the
      lapse of  individual life insurance policies for nonpayment of
      premium, to provide written notice in a uniform manner to policy
      owners.
      
           (2)  A notice of lapse of an individual life insurance policy
      for nonpayment of premium is effective only if:
      
           (a)  The information is mailed along with the reason for the
      lapse by first-class United States mail to the last-known address
      of the policy owner at least twenty-five days before the effective
      date of lapse; or
      
           (b)  The information is transmitted along with the reason
      for the lapse by electronic mail, if the policy owner consents to
      receive information related to an individual life insurance policy
      in electronic form, to the last-known electronic mail address of
      the policy owner on file with the insurer at least twenty-five
      days before the effective date of lapse of the individual life
      insurance policy.
      
           (3)  The affidavit, executed under penalty of perjury, of any
      officer, clerk, or agent of the insurer or of anyone authorized to
      mail or electronically transmit notices required by subsection
      (2) of this section, constitutes proof of notice under this section.
      
           (4)  This section does not apply to individual life insurance
      policies upon which premiums are paid monthly or at more
      frequent intervals.
      
           (5)  The commissioner may adopt rules necessary for the
      administration of this section.
      
           SECTION 2.  Act subject to petition - effective date -
      applicability. (1)  This act takes effect January 1, 2015; except that, if a
      referendum petition is filed pursuant to section 1 (3) of article V of the state
      constitution against this act or an item, section, or part of this act within the
      ninety-day period after final adjournment of the general assembly, then the
      act, item, section, or part will not take effect unless approved by the people
      at the general election to be held in November 2014 and, in such case, will
      take effect on January 1, 2015, or on the date of the official declaration of
      the vote thereon by the governor, whichever is later.
      
           (2)  This act applies to notices of lapse of individual life insurance
      policies on or after the applicable effective date of this act.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                        Morgan Carroll
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO