Adjusting a limitation of liability in life insurance policies.

SB 5495 adjusts life insurance policy terms in Washington State. It shortens the suicide exclusion period from two years to one year for standard life insurance policies and removes most exceptions (like suicide) from credit life insurance policies after January 1, 2026, except for fraud. The bill also requires clearer disclosure of policy terms, including coverage details and premium costs, to borrowers at the time of debt issuance. These changes directly affect policyholders, insurers, and creditors who provide or use credit-related insurance. The law takes effect January 1, 2026, for all policies issued or renewed after that date.