RCW 48.23.530: Third party receipt of notice of lapse or termination. (Effective January 1, 2027.)

(1)(a) Except as provided in subsection (4) of this section, an insurer that delivers or issues for delivery an individual life insurance policy in this state must notify the applicant for the policy, in writing at the time of application for the policy, of an applicant's right to designate a third party to receive notice of lapse or termination of the policy based on nonpayment of the premium.

(b) An applicant may make a designation described in (a) of this subsection at the time of application for the policy, or at any time the policy is in force, by submitting a written notice to the insurer containing the name and address of the third-party designee.

(2) In accordance with RCW 48.23.030(2), an insurer must transmit a copy of a notice of lapse or termination of the policy based on nonpayment of the premium to a third party designated in accordance with this section in addition to the transmission of the notice to the policyholder.

(3)(a) The designation of a third party under this section does not create or constitute acceptance of any duty or liability on the part of the third-party designee related to: (i) Informing or not informing the policyholder or any other person about a notice received by the third-party designee under this section; (ii) making a payment of any premium on behalf of the policyholder; (iii) compensating the policyholder, beneficiary, or any other person in relation to a lapse or cancellation of a life insurance policy; or (iv) taking any lawful action upon receiving a notice under this section and RCW 48.23.030(2).

(b) The designation of a third party under this section does not create or constitute acceptance of any liability on the part of the insurer as to the third-party designee related to a failure to send a notice as required by this section and RCW 48.23.030(2).

(4) This section does not apply to life insurance policies identified in RCW 48.23.030(3).