Posts tagged ‘Oregon insurance laws’

Oregon Term Life Insurance Information

Being aware of the subtle differences in state life insurance laws can help consumers make better decisions.  In Oregon, there are slight differences in laws and regulations regarding the free look policy, the grace period and the state guaranty limits.  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.  The Life and Disability Guaranty Association gives policy holders a limited guarantee that their policies will be paid in the event that the insurance company goes bankrupt.

Oregon Free Look Period

Oregon term life insurance offers a 10 day free-look period to protect consumers.  Policy holders can use this free-look period to review their policies and determine if the policy is right for them.  After reviewing the policy, consumers have the right to cancel the policy for any reason during this period.  If the policy is cancelled, the insurance company must refund all premiums and application fees.  Some insurance companies may provide additional time, up to 30 days, for customers to review their policies.

Oregon Grace Period

Oregon term life insurance state insurance code also requires a 30 day grace period on all insurance policies.  This protects the consumer by allowing 30 days beyond the payment due date in which to bring an account current.  During this time, the insurance company cannot terminate the policy.  If the payment is not brought current by the end of the grace period, the policy can be cancelled.  Policy holders may be able to get their policy reinstated, but additional requirements and fees may apply.

Oregon Life and Disability Insurance Guaranty Association

The Oregon Life and Health Insurance Guaranty Association benefits state residents with policies issued by licensed insolvent insurance companies.  In Oregon, there is up to a $300,000 life insurance death benefit and up to a $100,000 cash surrender value.  If the insurance company is no longer able to fulfill it’s obligations, it may be months before death benefits are paid while the courts sort out the affairs of the insurer.  Because of this, hardship provisions may be given to the beneficiary in the meantime.

Oregon Term Life Insurance Laws and Regulations

Oregon term life insurance companies are also protected under Oregon term life insurance laws and regulations.  If discrepancies in the life insurance application are found within two years of the issuance of the policy, the policy can be terminated.  The insurance company can dispute any information in the application.  This includes misinformation about any job related activities, tobacco use, medical conditions or dangerous lifestyle activities.  This protects the insurance companies from insurance fraud.

Oregon term life insurance laws and regulations are similar to other states but each state has different laws with subtle differences.  Things to look at include the free-look law, the grace period and the state life insurance guarantee.  The free-look law allows consumers to be protected for a defined period of time in order to review their policies.  Grace periods also give policy holders extra time to bring their account current before insurance cancellation.  In addition, the Oregon Life and Health Guaranty Association protects policy holder’s investments.