New Jersey Life Insurance (NJ)
The state of New Jersey has instigated laws regarding life insurance in order to financially protect consumers and insurers.
New Jersey Laws Protecting Life Insurance Consumers (NJ)
New Jersey’s life insurance industry is regulated under Title 17 of the New Jersey Statutes. These laws are in place to protect life insurance policyholders by overseeing policy requirements and claims procedures.
A 10-day”free look” period is mandated by law for all new policyholders. This window allows you a minimum of ten days to review your newly purchased life insurance policy, change your mind and receive a full refund of all premiums paid.
Another protection is a 30-day grace period for all late payments. This allows policyholders one month past their premium’s due date to make a payment without the worry of their life insurance policy being terminated by the insurer.
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New Jersey law also states that life insurance settlements must be completed by the insurer in a timely manner, usually within two months of receiving proof of death.
Life Insurance Laws Protecting New Jersey Insurers (NJ)
New Jersey life insurance companies are also guaranteed some protections. Any misleading or fraudulent statements found on a policy or application for coverage within the first two years of the policy’s life can result in policy cancellation. Even if the misstatement is accidental, a claim may not be honored and policy may be cancelled. A misstatement regarding age may be found at any time during the life of the policy and usually result in a simple recalculation of death benefits, reflecting the insured’s correct age.
Additional New Jersey Life Insurance Regulations (NJ)
If your life insurance company was to become insolvent, your policy would most likely be compensated by the New Jersey Life & Health Insurance Guaranty Association, as long as your insurer is licensed in New Jersey and your policy premiums are up to date.
The Guaranty Association receives fees from life insurance companies in the state, and in turn will back your coverage up to $300,000 or a death benefit and $100,000 for cash surrender.
Protect your loved ones today, request a life insurance quote in New Jersey!
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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