If you are a resident of Idaho, you have rights if you own life insurance.  The best way to take advantage of these rights is to be as familiar as possible with them.  Here is the most important information you need.

Idaho Life Insurance Rules And Regulations

Life insurance rights are protected under Title 41 of the Idaho State Statutes.

Grace PeriodIdaho

Idaho allows residents a 30 day grace period where after a missed payment, the policy remains in affect and will still pay a death claim if death of the insured happens during this time.  This has another beneficial effect of helping to prevent lapses in coverage, which may require the insured to go through new underwriting to obtain insurance, and could result in higher premium rates.  The grace period allows the policy to continue as it was, as long as the missed payment is made during this 30 day period.

Free Look

Idaho residents are protected with a longer than normal 20 day free look period.  During this period, consumers have the right to return a policy for a full refund, with no additional fees charged.  This free look period can be thought of as a trial period for the life insurance.  When a free look occurs, any money paid to the insurance company must be immediately returned to the client.  If death of the insured occurs during the free look period, a claim is still valid and must be paid by the life insurance company.

Claims Settled Fast

In Idaho an insurance company must settle all claims in a timely manner, as required under Title 41.  Idaho takes the less common approach amongst states of defining an exact time frame for “timely”.  All valid claims must be paid within 60 days of being filed.  Any insurance company taking longer may be subject to penalties and fines.

Guarantee Of Death Claim And Cash Value In Case Of Bankrupcty

If an insurance company with policy holders in Idaho were to go bankrupt, Idaho will reimburse policy holders through the Idaho Life and Health Insurance Guaranty Association.  This will cover beneficiaries up to $300,000 of death claims per insured, and owners up to $100,000 of lost cash value.  This limit is applicable as a maximum per person, regardless of size of contracts or number of contracts outstanding at time of death.

Idaho Department of Insurance

Telephone:  800-721-3272


Idaho Life & Health Insurance Guaranty Association

3355 N. Five Mile Road, #210

Boise, ID  83713

Telephone:  208-378-9510