California Insurance Code

§ 396

INS § 396 Effective Jan 1, 2023Div. 1 · Part 1 · Ch. 4 · Art. 1

Statute text

(a)An insurer shall do either of the following:

(1)Maintain a verifiable process that allows a policyholder to designate in writing or by electronic transmission pursuant to Section 38.6 one additional person to receive notice of lapse, termination, expiration, nonrenewal, or cancellation of a policy for nonpayment of premium. The insurer shall notify the policyholder in writing or by electronic transmission pursuant to Section 38.6 of this right at the time of the application or within 30 days after the inception date of an individual policy described in subdivision (f), and at least every two years thereafter. The notification described in this subdivision shall instruct the policyholder how to request the designation and how to replace or delete a designee. If a policyholder initiates contact with the insurer after the insurer has provided notice and the insurer complies with the policyholder’s request to establish or change the additional person to receive the notice described in this section, the insurer shall not be required to maintain additional verification.

(2)Comply with subdivision (b).

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Legislative history

Amended by Stats. 2022, Ch. 424, Sec. 2. (SB 1242) Effective January 1, 2023.