Term life insurance is a type of policy in which the coverage is pre-paid for a certain period of time. The holders of these policies are under numerous legal protections that watch over their privacy, settlements, payments, and more. However, in every state the rules and regulations can vary slightly. For holders of West Virginia term life insurance policies, it is extremely beneficial to learn the specific insurance laws in that particular state.
West Virginia Free Look and Grace Period
Of all the provisions in place for the protection of the policy holder, the free look period and the grace period are some of the most common. The free look period is designed to allow a new West Virginia term life insurance policy holder to decline the coverage and still receive a refund of any payments made. Most states offer this protection and in West Virginia it lasts for a minimum of 10 days. For those with policies, the grace period allows 4 weeks for a late premium payment. If the account is brought up to date, coverage will go on uninterrupted.
West Virginia Life and Disability Insurance Guarantee Association
Every insurance company that is licensed in the state of West Virginia must make an annual payment to the West Virginia Life and Health Insurance Guarantee Association. The Association is an organization in place for the protection of insurance policy holders whose insurance companies have gone bankrupt. For a lost death benefit in West Virginia, the compensation limit from the association is $300,000. This protection can only apply if the insurer is licensed in the state of West Virginia.
West Virginia Claims Procedures
The insurance laws in the state of West Virginia do not specify any particular procedure for claims that every insurer must follow. However, it is important that their claims are settled in a reasonable amount of time. If not, the compensation from death benefits can start to accrue interest. The rates of interest can vary from company to company. All holders of West Virginia term life insurance should be sure to familiarize themselves with their insurer’s full terms and conditions.
West Virginia Insurer’s Protection
Although the law is often on the side of the insurance policy holder, the insurance companies themselves are not excluded from legal protections of their own. For example, an insurance company in West Virginia is within its rights to cancel a policy without refund if customer misrepresentation is discovered in the policy’s first two years. In addition to this, any misrepresentation of age may be found at any time, resulting in the reducing of death benefits to reflect the insured’s true age.
Purchasing a West Virginia term life insurance policy does not have to be a risky, stressful and unpleasant endeavor. Most insurance companies offer payment plans for all budgets, and with the legal protections such as the free look period, the grace period, the West Virginia Life and Health Insurance Guarantee Association, a new policy holder can feel at ease about the process.