Are you considering purchasing a new insurance policy in Oklahoma? Are you comparison shopping insurance rates to lower premiums on a replacement policy? Well if you own life insurance or may own it in the near future, here is some important information from the state law code that will benefit you as a policy holder or beneficiary of a life insurance contract.
Oklahoma Rules And Regulations Of Life Insurance
The nitty gritty of laws governing life insurance in the Sooner State can be found in Title 36 of the State Statutes.
Free Look Period
The free look period is a time when the owner of a new policy gets to read the full policy wording very carefully, and decide if the insurance truly fits their needs and expectations. If the policy owner feels that the insurance policy does not meet their requirements, or if the owner decides that he/she does not want the policy for any reason, it can be returned for a full refund of all premiums paid during the free look period. The Free look period in Oklahoma is not mandated by the state government, but most life insurance companies will offer one to their clients. The length of time of the free look varies from company to company, and a life insurance owner should always inquire before they submit payment to the company how long the free look is. The free look period starts officially when the policy is delivered.
The grace period is the period of time immediately following a missed premium payment. During this time, a life insurance company can not deny an insurance claim if an insured person were to pass away. The grace period varies from state to state, but generally is about 30 days in length. Oklahoma is on the longer side, and provides a 31 day grace period. During the grace period a client can always make a payment to the insurance company and restore the policy in good standing. There are no limits to the amount of time a policy can enter grace periods.
Protection Of Death Benefits and Cash Surrender Value From Insolvency
If an insurance company were to be unable to make claim payments due to bankruptcy or insolvency, Oklahoma provides relief to consumers. Protecting up to $300,000 of missed death benefits, the Oklahoma Life and Health Insurance Guaranty Association will also protect up to $100,000 of cash surrender value. These limits are not high relative to the value of some life insurance contracts, and because of this when you are comparison shopping for life insurance on Life Ant, always purchase your insurance from financially stable companies.
Oklahoma Life & Health Insurance Guaranty Association
201 Robert S. Kerr Avenue, Suite 600
Oklahoma City, OK 73102
Oklahoma requires that all life insurance companies pay out claims in a timely manner to beneficiaries, and failure to do so can result in fines and sanctions against the company.
Oklahoma Insurance Department