Learning about life insurance rules and regulations in the state of Wisconsin would be a good idea for anyone who is looking to purchase a policy in the state. In the United States of America, life insurance is regulated on the state level. This means that life insurance rules vary from state to state. What might be OK for a life insurance company to do in Illinois might not fly in Wisconsin. While the claims process in Minnesota might look one way, it might be completely different in America’s Dairyland. This is why it’s so important to get familiar with life insurance in your state. You’re going to need it if you hope to make a wise purchase.
Life Insurance Laws In Wisconsin
The Wisconsin Statutes And Annotations (titles 600 to 655) regulate the life insurance industry in the state. This law book, seeking to protect both consumers and providers of life insurance, sets the standards for claims processing and policy requirements. Feel free to go ahead and study the fine print of The Wisconsin Statutes And Annotations if you really want to learn the ins-and-outs of life insurance in the state. For your ease and convenience, however, we have outlined the basic principles of the legislation for you below.
Free Look Period In Wisconsin
In the state of Wisconsin, new policyholders have 20 days to back out of their policy if they don’t like it. They are given a full refund and the policy is canceled, should they so desire. This period of time, known as the “free look period”, allows consumers times to examine and review their policy after they sign it. Often times, people rush into signing a policy without reading the fine print and then have “buyer’s remorse” shortly afterward. This free look period allows time for consumers to really think about their purchase.
Protection Of Personal Information In Wisconsin
Wisconsin insurers are not permitted to share client information without their written consent. Personal information, such as medical records, is protected by state law. Each life insurance company in Wisconsin is responsible for implementing its own system of consumer privacy protection, so it’s best to check with your insurer to see what their company policy is.
Timely Payment On Claims In Wisconsin
In Wisconsin, insurers are required to pay claims within 30 days of receiving them. If the claim takes longer than 30 days, the beneficiary’s account begins to accrue interest. This law is meant to protect the consumer from getting the “run around” from their insurer whenever they try to collect on their benefits. Insurance company’s who are late in paying claims will also be met with severe penalties.
For more information on your life insurance rights in Wisconsin, please contact:
Wisconsin Office of the Commissioner of Insurance
Wisconsin State Guaranty
Life insurance policies in the state of Wisconsin are backed by the Wisconsin Insurance Security Fund. This means that even if your life insurance company goes out of business, you can still collect your benefits. In order to qualify for this, your insurer must have been licensed to do business in the state, and you must be up to date on your insurance payments. The Wisconsin Insurance Security Fund protects you for up to $300,000 in lost death benefits. For more information, please contact them at:
2820 Walton Commons West, Suite 135
Madison, WI 53718-6797