Massachusetts Life Insurance (MA)
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The state of Massachusetts has laws and regulations in place to help financially protect consumers and insurers.
Massachusetts Life Insurance Laws protecting consumers (MA)
The Massachusetts Insurance Industry is regulated under Chapter 25 of the Laws of Massachusetts, outlining claims procedures and policy requirements for all insurance consumers of the state.
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“Free Look” Period: Under this protection, new life insurance policyholders may purchase a policy while still being able to change their mind and cancel the policy within a minimum of 10-days. A full refund of payments must be given with no penalty charged.
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30-day Grace Period: Policyholders in the state are legally allowed one month to be late on a payment without the worry of their policy being cancelled by the insurer. Terminating a life insurance policy for non payment when it has been past due for less than thirty days is against Massachusetts insurance law.
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Death Benefit Settlements: It should take no longer than 30 days from receipt of the proper documentation. Interest may begin to accrue after this 30-day window has ended.
Massachusetts residents, request a life insurance quote today!
Massachusetts Life Insurance Regulations Protecting Insurers (MA)
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The state has also created laws to help protect insurers. Some of these laws include:
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Fraudulent or Misleading Findings: Any fraudulent or misleading information on a policy or application for coverage within the first two years of the policy’s life can result in policy termination. No benefits will be paid out, and all premiums paid will be refunded. Any misstatements regarding age will result in a recalculation of the death benefit to reflect the proper age.
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Suicide: Not a covered death benefit within the first two years of a policy’s life. Any claim will result in only a refund of all premiums paid.
Additional Massachusetts Life Insurance Regulations (MA)
Viatical Settlements are arrangements made between an insured individual and a third party. The third party pays all premiums of the life insurance policy for the insured, and in turn becomes the sole beneficiary of the policy. These types of settlements are legal and regulated in the state of Massachusetts.
Your life insurance policy is backed by the Massachusetts Life & Health Insurance Guaranty Association, as long as your policy was written by a licensed insurance company in the state and your premiums are up to date. The Guaranty Association will help to compensate your lost policy in the unfortunate event that your life insurance company was to go bankrupt.
There are, however, limits to this protection. A lost death benefit has a maximum compensation of $300,000, and $100,000 for lost cash surrender.
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.
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