The land of 10,000 lakes also has a pretty thick rule book regulating life insurance.  If you are looking to purchase a new policy, or even if you are already the owner of an existing life insurance contract, being aware of your rights as a policy holder will help you take full advantage of all the features of your policy.

Minnesota Life Insurance Rules and Regulations

Life insurance is a highly regulated and watched industry by Minnesota law makers.  In Minnesota the sections of the state statues spelling out the exact rules all insurance companies must abide by are Chapters 59A-79A.  If you don’t want to read through all the legal jargon, we don’t blame you.  You should familiarize yourself with the most common regulations stated below however, as they are the most likely to be utilized by policy holders.

Free Look Period

Minnesota believes that it’s sharp as a tack denizens don’t need a mandated “free look” period to consider their life insurance.  However because a free look period is so standard across the industry, most insurance companies will provide a free look period as a part of their company policies.  If the policy is in place, the insurance company must apply is fairly and the same way for everyone.  The length of time provided varies company to company so always be sure to check before your purchase.

A free look period is a period of time where an owner of a new policy can return their policy for a full refund from life insurance company.  No fees or penalties are charged for returning the policy during the free look time period.

Grace Period

Minnesota follows suit with most of the rest of the country, and provides a 3o day grace period for a policy owner to make a missed premium payment after a payment is past due.  The grace period starts on the day the premium payment was supposed to be made, and runs for at least 30 days.  If an insured dies during the grace period, the life insurance benefit must be paid in full as long as the claim is otherwise valid.  If the missed payment is made by the owner during the grace period, the policy will return to good standing.  The amount of times a policy goes into grace period is unlimited.

Using Interest To Reward Fast Claim PaymentsMinnesota

In Minnesota, the lawmakers believe that consumers deserve fast payment on their claims.  To help nudge insurance companies into paying claims quickly, Minnesota mandates that interest start accruing on the death claim the moment a death certificate is received by the insurance company.  If the company takes longer than 60 days to pay a claim, the interest rate rises.  Because insurance companies do not want to spend money on interest payments, claims are usually paid within about a month.

Guarantee Of Death Benefits and Cash Surrender Value

Minnesota helps it’s policy holders feel a sense of security by providing a guarantee of both death benefits and cash surrender value.  The Minnesota Life and Health Insurance Guaranty Association provides up to $300,000 of death benefit protection, and up to $100,000 of cash surrender value per person.  As always, Life Ant recommends you only purchase life insurance from a company in a position of financial strength.

Minnesota Department of Commerce

Telephone:  651-296-4026


Minnesota Life & Health Insurance Guaranty Association

4760 White Bear Parkway, Suite 101

White Bear Lake, MN  55110

Telephone:  651-407-3149