Posts tagged ‘Idaho insurance laws’

Idaho Term Life Insurance Information

Life insurance is an important product to many families and can be purchased in all states across the nation. As a result, it is important to understand that each state has a Department of Insurance that mandates its own regulations and therefore each state may have different requirements and policies. Idaho term life insurance policies offer policyholders a free-look period and a grace period. The Idaho Life and Health Insurance Guaranty Association also provides protection to consumers against insurance company insolvency.

Idaho Free Look Period

The free-look period in Idaho is 20 days. The free-look period is the amount of time that a policyholder can cancel a new life insurance policy, even after it has been purchased. If the policyholder elects to cancel the policy within the free-look period, they cannot be penalized and all paid premiums must be refunded to them. The policy holder can cancel for any reason during the free-look period. Some Idaho insurance companies offer a 30 day free-look period at their discretion so make sure to find this out when purchasing a policy.

Idaho Grace Period

The grace period for Idaho life insurance policies is 30 days. The grace period protects policy owners from having their policy lapse and be canceled due to a late payment. Idaho gives consumers nearly one month to make a late payment without having their policy canceled and allows them to stay current if the premium is paid within that time frame. The grace period is especially nice for those who unintentionally miss a payment.

Idaho Life and Health Insurance Guaranty Association

The Idaho Life and Health Insurance Guaranty Association protect policyholders from total loss in the unlikely event that their life insurance company becomes insolvent and is unable to pay claims. The Idaho Life and Health Insurance Guaranty Association have a restriction on the benefit amount that they guarantee. The association pays a maximum death benefit of $300,000 or a maximum cash surrender of $100,000.

Idaho Claims and Misrepresentations

Claims should be settled within two months of the file date unless the death occurs within two years of the policy and the insurance company contests the claim. It is important to provide correct information on a life insurance application to prevent the policy from being rescinded.  Any fraudulent misstatements found on a life insurance application can result in the immediate termination of the policy with a refund of premiums. If an age discrepancy is found, the death benefit will be adjusted as appropriate for the correct age.

Most insurance companies operate in a similar manner but each state may have some important differences. It is necessary to verify the free-look period when you are buying a new life insurance policy. In addition, policyholders should know their grace period rights in the event of a late payment. It is also important to know the Idaho Health and Life Insurance Guaranty Association benefits restrictions for the maximum payout. Insurance companies can challenge answers found on life insurance applications and misrepresentations can cause a policy to be rescinded or terminated.