Alabama Life Insurance (AL)
Alabama Life Insurance Laws (AL)
The state of Alabama has laws and regulations in place to help financially protect both life insurance customers and insurers. Some of the regulations in place include:
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Title 27 of the Code of Alabama: The life insurance industry of Alabama is regulated to protect consumers, their claims, and their policies.
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The Free Look Provision: Allows the insured party a minimum of ten days to terminate a policy for any reason, even after it was signed and paid for. All premiums
paid to the insurer by the insured must be refunded.
Late Payment Grace Period: Requires that all life insurance providers allow a late payment grace period of thirty days, allowing you enough time
to bring your account up to date without the worry of your policy being cancelled.
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Alabama Life Insurance Regulations to Protect Insurers (AL)
Life insurance companies also have rights and
laws protecting them against consumer fraud and deception. Alabama life insurance companies may contest any statements made on an application for up to two
years from the policy’s effective date. Any fraudulent findings or misstatements are just cause for the life insurance company to terminate the policy
at hand without refunding any premiums.
Additional Alabama Life Insurance Regulations (AL)
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Viatical Settlements: An agreement between and insured individual and a third party. The third party is responsible for all premium
payments, and in turn is the unalterable beneficiary of the insured individual’s life insurance policy. Viatical settlements are both legal and regulated
in the state of Alabama.
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Alabama Life and Disability Insurance Guaranty Association: In the unfortunate event that your life insurance company should go out of business, your life insurance policy will be covered. Lost cash values are not to exceed $100,000 for each insured individual, or all benefits, including total cash values, not to exceed $300,000. In order for payment to be made by the Guaranty Association, or ALDIGA, the life insurance company must be licensed in the state of Alabama, and the policy premiums must be paid up to date.
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Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
Last Updated: June 16, 2009
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