If you are living in Oregon and are interested in life insurance, you should educate yourself on the unique life insurance situation in the state. Life insurance in the United States is regulated on the state level, so that means that every state in the country has its own set of unique laws. Oregon residents, whether they are interested in term life insurance or whole life insurance, should learn about these laws and what effect they could have on their life insurance policies.
Oregon Life Insurance Rules And Regulations
The life insurance industry in the state of Oregon is regulated under Chapters 731 through 752 of the Oregon Revised Statutes. These statutes, written with the protection of the consumer in mind, outline the claims procedures and policy requirements in the state of Oregon. While you could study the Oregon Revised Statutes for hours, we thought it would be more convenient to highlight the key parts of this document for you below:
No Free Look Period
In terms of life insurance, a “free look period” refers to the period of time in which new policyholders can cancel their policy and receive a full refund. These periods, usually within the first couple weeks of the policy, allow for the consumer to review their recently signed life insurance document, test drive their policy, or simply change their mind if they have buyer’s remorse. Unfortunately for Oregon residents, there is no legally mandated free look period in the state. With that being said, many life insurance providers will offer their policyholders a free look option if they chose to sign up.
In Oregon, life insurance policies cannot be canceled for reasonably late premium payments. The way the Oregon legislature defines “reasonably” is 30 days. Therefore, if you miss a payment on your insurance bill, you are given thirty days to make up for it before your life insurance company can legally terminate your policy.
Timely Payment On Claims
Life insurance companies in Oregon are legally required to make payment on claims within 30 days of receiving proof of death. If they do not make payment of the benefit to the beneficiary within this time frame, the beneficiary’s account will accrue interest and the life insurance company will meet legal repercussions.
For more information on life insurance in Oregon, please contact:
Oregon Insurance Division
State Guaranty In Oregon
If your life insurance company goes out of business in the state of Oregon, your insurance policies are still backed by the Oregon Life and Health Insurance Guaranty Association. This association helps protect you, as a policyholder, should your insurance company go bankrupt.
In order to qualify for this backing, your insurer must have been licensed to operate as a life insurance company in the state of Oregon. The Oregon Life and Health Insurance Guaranty Association protects your policy for up to $300,000 in lost death benefits and for up to $100,000 in lost cash surrender. For more information, please contact them at:
3355 N. Five Mile Road, Suite 209
Boise, ID 83713