If you are in the market for life insurance in Montana, there are a few things you should be aware of. Whether you are looking to buy term life insurance or whole life insurance, you should familiarize yourself with the Montana life insurance laws. Like every other state in the country, life insurance is regulated on the state level, which means the rules in Montana will be different than the rules elsewhere.
Montana Life Insurance Rights And Regulations
The life insurance industry in Montana is regulated under what they call the Montana Code (specifically Title 33). This set rules, made with the protection of the consumer in mind, outlines the claims policies and the policy requirements for life insurance in the state. Here are some of the key points:
No Free Look Period
A lot of other states have a “free look” period which allows for consumers to “test drive” their insurance policies for a certain number of days before they become locked into them. Montana, does not have a law regarding free look periods. Most life insurance companies in Montana, however, will still allow new policyholders between 7-30 days in which they can back out of their policy and still get a full refund. Check with your insurance company to see what their policy is regarding this free look period.
30 Day Grace Period
In Montana, all licensed life insurance providers are required to give their policy holders a 30 day grace period with their bill payments. This means that if a policyholder is late paying their premium, they are still allowed a 30 day time period in which they can make good on this payment before the insurer is legally allowed to cancel their policy. This law was put into place with the consumer in mind in order to insure that life insurance policies would not be terminated because of reasonably late payments.
Timely Payment On Claims In Montana
After a claim is filed on a life insurance policy in the state of Montana, insurers are given 30 days to make payment. If they do not pay the benefit in a timely fashion, the beneficiary’s account will accrue interest and the insurer will be fined.
For further information on your life insurance rights as a consumer in the state of Montana, please contact:
Montana Commissioner of Securities and Insurance
Montana State Guaranty
In the unlikely event that your insurance company goes out of business, your policy will still be backed by the Montana Life and Health Insurance Guaranty Association. The association will insure your policy for up to $300,000 in death benefits and up to $100,000 in lost cash benefits. In order to qualify, your insurance company must be licensed in the state of MT, and you must be up to date on your payments.
Please feel free to contact the Montana Life and Health Insurance Guaranty Association with any further questions.
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