Indiana residents looking to purchase a life insurance policy need to be aware of a few different things in regards to life insurance. All states in the United States have their own rules and regulations when it comes to the life insurance industry. Indiana is no different. Read below to further educate yourself on the life insurance laws and other penitent information in the state.
What Does Indiana State Law Say In Regards To Life Insurance?
Life Insurance in Indiana is regulated by Title 27 of the state code. The Indiana state Insurance Code mandates laws in order to protect you, the consumer. Here are some of the important things mentioned in this code:
Free Look Period
Most states in the United States give consumers the option of opting-out of their life insurance policy shortly after they sign up for it. This allows for people with buyer’s remorse, or people who may have been pressured into buying a policy they did not really want a “way out.” In Indiana, however, there is no law that says life insurance companies must give you a free look period. With that being said, most life insurance providers in the state will offer a short period of time – usually a week or two – for you to “test out” your policy.
Like the free look period, most states in the country have laws regarding a “grace period.” Unlike the free look period, life insurance companies in Indiana are required by law to have this grace period. In regards to life insurance, the grace period refers to a period of time in which policyholders are allowed to be late with their payment before the life insurance company cancels their policy. In Indiana, policyholders are given 30 days to be late before their policy gets cancelled.
Timely Payment On Claims
In the state of Indiana, insurance companies are required to make payment on a claim within 2 months of receiving it. If they don’t make payment to the beneficiary within two months, the beneficiary will accrue interest and the insurance company will be fined.
For further information on your life insurance benefits in the state of Indiana, please contact:
Indiana Department of Insurance
Indiana State Guarantee Association
Your life insurance is protected by the state of Indiana even if your life insurance company goes out of business. In Indiana, the Indiana Life & Health Insurance Guaranty Association protects your life insurance policy for up to $300,000 in lost death benefits or for up to $100,000 for lost cash surrender.
The Indiana Life & Health Insurance Guaranty Association can be reached at:
8777 Purdue Road, Suite 360
Indianapolis, IN 46268