California Life Insurance (CA)
The California Insurance Laws regulate the claim procedures and policy requirements for the state’s life insurance industry, protecting you, the consumer, in a number of ways.
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California Life Insurance Laws and Regulations (CA)
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10-day “Free Look” Period: This allows you a minimum of 10 days (though many companies give you up to 30) after you
have bought your policy to change you mind and receive a full refund of all premiums paid.
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All claims should be settled within 30 days after the proof of death is supplied. After 30
days, the benefit may accrue interest, payable to the beneficiary.
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Late Payment Grace Period of 30 Days: This gives the insured 30 days after a payment due date to pay the premium without worry of the policy being canceled by the insurer.
California Life Insurance regulations Protecting Insurers (CA)
In order to protect the insurance companies, California has a few regulations that must be followed by the insured.
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Suicide: Not a covered death benefit during the first two years of a life insurance policy. Instead, a complete refund of premiums will be the result of such a claim.
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Misrepresenting or fraudulent statements on an application or policy of life insurance protection may result in a denial in coverage. Premium refunds may or may not be given as stated in the
terms of the individual policy at hand.
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Financial projections (also known as Insurance Illustrations) are permitted in California and regulated by the insurance department.
Additional California Life Insurance Regulations (CA)
Should your licensed insurance company become insolvent, the California Life and Health Insurance Guarantee Association will compensate
you in the event that your policy is lost. Reimbursement for a single death benefit may not exceed $250,000 per insured individual or $100,000 in net cash. These limits hold true even if more than one policy is held on each individual.
To be guaranteed compensation under CALIFEGA, your insurer must be licensed in California and your policy payments must current.
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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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