New Jersey residents would be smart to educate themselves on the way life insurance works before purchasing a policy in the state. New Jersey, like other states in the country, has its own set of rules and regulations in regards to the life insurance industry. Before making the life-changing purchase of life insurance, please familiarize yourself with these rules in order to make an informed decision.
New Jersey Life Insurance Rules And Regulations
Life insurance laws in the state of New Jersey are laid out in Title 17 of the New Jersey Statutes. This law code, which sets out to protect consumers of law insurance policies, outlines the claim procedures and policy requirements in the state. While we know our visitors at Life Ant would love to study the long legislative text, we decided to go ahead and highlight the key points of the statutes below:
Free Look Period In NJ
New Jersey residents are given ten days after they purchase a life insurance policy to “return it” and get a full refund. This 10 day period, known as a “free look” period, can be viewed as a time in which policyholders can “test drive” their recent purchase. If they are not satisfied with the policy in any way, shape, or form, they are to be given a full refund.
Payment Grace Period In NJ
If NJ residents are accidentally late on their insurance bill payments, they don’t have much to worry about. The state mandates that New Jersey life insurance policy holders are given a 30 day grace period to make up for a late payment before their policy is canceled. This grace period allows for accidental missed payments and “reasonably” late payments without immediate policy termination.
Timely Claim Payments In NJ
New Jersey life insurers are required to process payment on claims as soon as possible. The state code requires that insurers pay claims within two months of receiving proof of death from the policy holder.
For more information on life insurance rules, regulations, and your rights in the state of New Jersey, please contact:
New Jersey Department of Banking & Insurance
New Jersey State Guaranty
If your life insurance company goes bankrupt in the state of New Jersey, your policy will still be backed by the New Jersey Life and Health Insurance Guaranty Association. In order to qualify, you must make timely premium payments and your (former) insurance company must have been licensed to operate in the state.
The New Jersey Life and Health Insurance Guaranty Association will protect your investment for up to $300,000 in death benefits and up to $100,000 in lost cash surrender. For more information, you can contact them at:
11 Wharf Avenue, Suite One
Red Bank, NJ 07701