Posts tagged ‘North Dakota insurance laws’

North Dakota Term Life Insurance Information

In North Dakota, there are subtle differences in term life insurance laws from other states and it is important to determine what these differences are.  With the free-look policy, consumers are able to review their policy and decide if it is the right coverage for them within a defined period of time.  In addition, the payment grace period before a policy can lapse can also be different for each state.  In North Dakota, the North Dakota Life and Disability Guaranty Association gives policy holders a limited guarantee that their policies will be paid.

North Dakota Free Look Period

With the North Dakota term life insurance free-look policy, policy holders are allowed 20 days to review their policy, change their mind and decline the coverage for any reason.  This applies even if a contract has been signed.  Some North Dakota term life insurance companies even provide up to 30 days with no cancellation penalty.  This benefits the consumer by providing them with time to determine if the coverage is correct and if it is the right policy for their needs.  Any premiums that have already been paid must be returned to the policy holder.

North Dakota Grace Period

North Dakota term life insurance also has a grace period for delayed payments.  Payments made within 31 days of the premium due date fall into this grace period.  A policy holder will not lose coverage if they bring their account current during this period.  If a payment is not made by the end of the grace period, the insurance company has the right to terminate the policy.  Sometimes a policy can be reinstated, but there may be additional fees and requirements necessary to regain policy coverage.

North Dakota Life and Disability Insurance Guaranty Association

When an insurance company licensed in the state of North Dakota becomes insolvent, policy owners have a safety net on their term life insurance policies.  The North Dakota Life and Health Insurance Guaranty Association guarantees coverage protection up to $300,000 for life insurance and up to $100,000 for cash surrender value.  The policy may be taken over by a financially sound insurance company who will continue to provide coverage and collect premiums, or the North Dakota Life and Disability Guaranty Association may provide the coverage directly.

North Dakota Term Life Insurance Laws and Regulations

North Dakota term life insurance companies are also protected against life insurance fraud in the state of North Dakota.  State law provisions provide them with up to two years to detect any discrepancies.  Any erroneous information, including medications or tobacco use can result in a cancellation of the policy.  There are allowances for the misstatement of age though.  Rather than terminating a policy with an incorrect age, the policy rate will be adjusted to reflect the accurate age.

North Dakota’s term life insurance laws and regulations are similar to other states.  Each state has different laws with subtle differences though.  With the free-look policy, consumers are protected with a defined period of time to review their policies.  During this period they can cancel them for any reason with no penalties.  Grace periods also give policy holders extra time to bring their account current before insurance cancellation.  In addition, the North Dakota’s Life and Health Guaranty Association protects policy holder’s investments.