State Regulation on Insurance Coverage
There is a general insurance law that every state in the U.S. has to conform with. Aside from such law, there is also a state regulation that standardizes insurance coverage among individuals residing in Nebraska. The State Insurance Code is designed as a safety device for people who are covered by Nebraska life insurance plan. Under this law, the following are some of the governing provisions:
- Cancellation of policy. Under the free look provision, an insured person can cancel his policy even if the contract has been signed within a guarantee period of 10 to 30 days. It is akin to a trial period in which you are given a chance to try a product and if you realize it is not the right coverage for you, then you are free to cancel the agreement.
- Immediate processing of death benefits. There is a sweeping law that mandates all life insurance companies in Nebraska to award death benefits immediately. With complete documentation the process commonly takes two months to complete. If an insurance company fails to comply, it is made to pay interests on the benefit claims.
- Time extension. Insurance policy holders in Nebraska are given 30 days to settle their premium payments if they have missed the schedule. Within this period an insured person can still have his policy on current status if he makes the payment during the allowed time extension. After the grace period and no payment is made the company can terminate the policy.
- Protection from discrepancy. Life insurance companies in Nebraska are given protection by a state law on their right to dispute the information provided by a policy holder within two years. During this allowed period, if the insurer finds out that there are false statements given by the policy holder, the policy may be canceled. Nonetheless when the issue is about wrong age, the policy continues to be in effect with some adjustments on the premium rates.
Various services and productsNebraska life insurance companies provide various services and products that are designed to fit the needs of each policy holder. Aside from the usual term and permanent life insurance plans, the following are also offered: child life insurance, critical illness insurance, life insurance riders, annuities, term conversion and review of investment portfolio. Every offer is accompanied by “free look” guarantee in which an insured person is free to cancel the policy if he deems it not suitable for his personal account.
If you wish to find out more about Nebraska life insurance laws, policies as well as the various companies that provide coverage, you can browse the internet about Nebraska insurance state law. You will then find some learning tools on life insurance that can make you understand the coverage provided by insurers for their clients. With the insurance tools used to compute and assess each case, you can likewise estimate your insurability status.