If you are a Mississippi resident and planning on buying life insurance, there’s a few things that you should be aware of. Each state in the country has its life insurance industry regulated on the local (state) level. This means that Mississippi has different life insurance laws than its next door neighbors – Alabama and Louisiana. Because of this, it would be smart to learn about the laws and regulations that are unique to Mississippi.
Mississippi Life Insurance Consumer Rights
In the state of Mississippi, the life insurance industry is regulated by Title 83 of the Mississippi Code. We’ve provided a link for you to click on and read about these laws yourself, but we suspect that you would rather have us explain to you the key points of the legislation. Here they are:
Free Look Periods
Mississippi residents will be disappointed to hear that there is no “free look period” in the state. Free look periods allow for consumers to get a full refund on their life insurance policy if they are not satisfied with it. Although there is no free look period in the state, most Mississippi life insurance companies offer their policyholders with one anyways (usually between one and two weeks).
Incontestability Clauses
In Mississippi, if you have a life insurance policy with a company for two years, the life insurance company is not allowed to cancel your policy for any reason. If you file a claim within two years of owning a policy, however, the life insurance company is allowed to review the claim for inconsistencies and misrepresentations. If they find any errors or omissions in the original application, they are able to void the claim and not pay the benefit. After this two year period is up, however, Mississippi insurers must pay out on the claim, regardless of any errors in the original application.
Timely Payments
Just like there is no free look period in the state, there is also no laws regarding timely payment on claims. Life insurance companies are expected to make immediate payment on death benefits as soon as proof of death is received in a claim, however, there are no laws enforcing the timeliness of the payment. With that being said, most insurers in Mississippi will pay a claim within a months of receiving the claim.
For further information on your life insurance rights as a Mississippi resident, please contact:
Mississippi Insurance Department
Telephone: 800-562-2957
www.mid.ms.gov
State Guaranty In Mississippi
If your insurer somehow becomes insolvent in the state of Mississippi, your policy will still be backed by the Mississippi Life Guaranty Association. This means that even if your insurance company goes bankrupt, your benefits are still insured. In order to qualify, you must be up to date on your premium payments, and the company you insured with must have been legally licensed in the state of MS.
The Mississippi Life Guaranty Association will protect you for up to $300,000 in lost death benefits and for up to $100,000 in lost cash surrender. They can be reached at:
PO Box 4562
Jackson, MS 39296
Telephone: 601-981-0755
http://www.mslifega.org/
