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Illinois Life Insurance (IL)
The state of Illinois has laws and regulations in place to help protect both consumers and insurers when investing in life insurance policies.
Illinois Life Insurance Laws Protecting Consumers (IL)
Act 5 of the Illinois Insurance Code: The insurance industry in the state of Illinois is regulated under this code. It was put into place to protect you, the insurance consumer.
10-day “Free Look” Provision: Allows a new life insurance policyholder ten days to review their policy and cancel it for any reason. Policyholders are entitled to a full refund of all premiums paid.
Medical Records: Any life insurance policyholder has the legal right to request that their medical records be sent to the physician of their choice. The insurer, however, is not required to send the requested information directly to the insured.
30 Day Grace Period: When a claim is filed (after the medical records and proof of death have been received), the insurer is allowed 30 days to either pay the claim or deny payment. After the 30 days, the benefit will begin to accrue interest, payable to the beneficiary.
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Illinois Life Insurance Laws and Regulations Protecting Insurers (IL)
Illinois takes measures to protect insurers as well. Act 5 of the Illinois Insurance Code also provides protection to insurers.
Life insurance companies can create and administer their own claim procedures, as long as they adhere to the code.
Another protection is no final limit on the amount of time an insurance company needs to investigate a claim. The state understands that such investigations may take some time to complete.
Misrepresentation and Fraudulence: Within the first two years of a policy, state law allows life insurance companies to investigate any claim. Any fraudulent findings or misrepresentation, either in a claim, policy, or application for coverage of the insured can be considered cause for policy termination and prosecution. All premiums paid must be refunded.
Suicide within the first two years of a policy is up to the discretion of the insurer.
Additional Illinois Life Insurance Regulations (IL)
Viatical settlements are not regulated in Illinois. These are arrangements made between the insured and a third party, with the third party paying all premiums, therefore becoming the sole beneficiary of the policy. Viatical settlement providers are required to register with the Illinois Department of Insurance.
Insurance Illustrations (financial projections) and their content are also regulated, this time by Title 50 of the Illinois Administration Code.
If your life insurance company were to become insolvent, the Illinois Life & Health Insurance Guaranty Association will be there to help covering your life insurance policy. Death benefit proceeds may not exceed $300,000 per insured individual, and cash value compensation cannot exceed $100,000. These hold true no matter the number of policies and their dollar amount on anyone insured.
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.