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Life insurance laws by state

Life insurance laws by state

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How does my state affect my life insurance purchase?

Every state has its own rules about buying, maintaining, and claiming life insurance.

The life insurance industry is regulated at the state level. That means every state has its own rules about buying, maintaining, and claiming life insurance.

If you’re considering life insurance, knowing the rules that apply based on where you live can help you understand your rights and responsibilities as a policyholder. Here’s some general information about some of the laws for each state on life insurance policies.

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What do state life insurance laws cover?

Some life insurance laws cover grace periods, free look period, incontestability period, payment guarantees, and timely payment

Generally, state laws aim to help protect consumers by making sure life insurance companies provide adequate protections with their policies. While they vary by state, typical areas covered in life insurance rules and regulations include:

  • Grace periods. The grace period is the period in between the time your payment is due and when your policy lapses. If you forget to make a payment or aren’t able to keep up with payments, the grace period prevents your policy from being canceled immediately. Most states require companies to provide roughly one month to pay your premium.
  • Free look period. If you decide not to keep your coverage for any reason, the free look period allows you to return it and receive a full refund of all premiums. This is typically a brief period, around 10 days. If you die during that period, you still receive the death benefit. After that time, premiums are nonrefundable.
  • Incontestability. If your state has a contestability period, your insurance company can’t challenge a claim on your policy after you’ve owned it for a certain period of time. In most states, that period lasts two years.
  • Payment guarantees. It’s extremely rare for life insurance companies to go out of business, but it does happen. That’s why it’s important to work with a reputable company with a solid financial rating. If your life insurance company goes bankrupt, many states will guarantee your life insurance payout, typically up to a certain amount of your death benefit. If you have permanent life insurance, your state might also guarantee a certain portion of your cash value.
  • Timely payment. Some states have language requiring the timely payment of death benefits after the policyholder passes away. This language may or may not specify a particular time frame. Regardless of the laws in your state, most insurers are already motivated to pay out death benefits quickly. If they wait too long, they may have to pay interest on the payout.

Most states also have rules around protecting consumer privacy and making contracts understandable, as well as rules that consumers need to follow about being truthful about their age and personal information to avoid invalidating the policy.

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Life insurance laws by state

We’ve compiled a short list of various laws by state that may impact your life insurance policy. Keep in mind that your insurance company may offer additional protections beyond what’s required by law. If you have questions about your coverage, a life insurance agent can provide specifics on your plan.

Legal Disclaimer: This information is for educational purposes only and should not be followed as legal advice. Life insurance laws are complex, and your own life insurance policy may be subject to additional laws beyond the ones mentioned here. Fidelity Life reviews and updates this page on an annual basis. This information was last reviewed on July 15, 2021.

Alabama

  • Alabama’s life insurance laws are governed by Title 27 of the Code of Alabama
  • 10-day free look period (AL Admin Code 482-1-131-.03)
  • 30-day grace period (AL 27-15-3)
  • For claims not paid within 30 days, insurers must pay interest starting from receipt of proof of death (AL 27-15-13)
  • Guarantees up to $300,000 in death benefit payments and $100,000 in cash value per individual if your insurer goes out of business

Alaska

  • Alaska’s life insurance laws are governed by Title 21 of the Alaska Statutes
  • 10-day free look period (AK Stat 21.45.020)
  • 30-day grace period (AS 21.45.030)
  • Incontestable after two years of holding the policy (AS 21.45.040)
  • Requires timely payment of claims within two months (AS 21.45.130)
  • The Alaska Life and Health Insurance Guaranty Association guarantees up to $300,000 in death benefit payments and $100,000 in policy cash value

Arizona

  • Arizona’s life insurance laws are governed by Title 20 of the Arizona Revised Statutes
  • 10-day free look period (AZ Admin Code R20-6-209)
  • 30-day grace period  (AZ 20-1203)
  • Claims must be paid within two months (AZ 20-1215)
  • For claims not paid within 30 days, insurers must pay interest starting from receipt of proof of death (A 20-462)
  • The Arizona Life and Disability Insurance Guaranty Fund guarantees up to $300,000 in death benefit payments and $100,000 for lost cash surrender value

Arkansas

  • Arkansas’ life insurance laws are governed by Title 23 of the Arkansas Code (Chapter 81)
  • Minimum 10-day free look period (AR Code Ann. 23-79-112)
  • 30-day grace period (AR 23-81-104)
  • Insurers must pay claims within two months, and claims not paid within 30 days are subject to interest starting from the date of death (AR 23-81-113)
  • Guarantees up to $300,000 in death benefit payments and $100,000 for lost cash surrender value

California

  • California’s life insurance laws are governed by the California Insurance Code
  • 10-day free look period (CA Ins. Code 10127.9)
  • 60-day grace period (CA 10113.71)
  • Companies are required to pay accrued interest starting from the date of death if payment takes longer than 30 days (CA 10172.5)
  • Guarantees up to $300,000 for lost death benefit payments and $100,000 for lost cash surrender value

Colorado

  • Colorado’s life insurance laws are governed by Title 10 of the Colorado Revised Statutes
  • 15-day free look period (CO Rev. Stat Ann. 10-7-302)
  • 31-day grace period (CO Rev. Stat Ann. 10-7-302)
  • Companies must pay interest on claims starting from the date of death (CO Rev. Stat Ann. 10-7-112)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Connecticut

Delaware

  • Delaware’s life insurance laws are governed by Title 18 of the Delaware Code
  • 10-day free look period (18 DE ADC 1203)
  • 30-day grace period (18 DE ADC 2906)
  • Insurance companies must pay out death benefits within 30 days and add interest starting from the time the claim is filed (18 DE ADC 2914)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Florida

Georgia

  • Georgia’s life insurance laws are governed by Title 33 of the Georgia Code
  • 10-day free look period (GA Code Ann. 33-25-8)
  • 30-day grace period (GA 33-25-3)
  • If a claim is not settled within 30 days, the death benefit begins to accrue interest from the date of death (GA 33-25-10)
  • Guarantees up to $300,000 for lost death benefits per individual

Hawaii

  • Hawaii’s life insurance laws are governed by Title 24 of the Hawaii Revised Statutes
  • 10-day free look period (HI Rev. Stat Ann. 431:10-214)
  • 30-day grace period (HI 431:10D-102)
  • Insurers must pay interest on claims not paid within 30 days, with interest accruing from the date of death (HI Rev. Stat Ann. 431:10-243)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Idaho

  • Idaho’s life insurance laws are governed by Title 41 of Idaho Statutes
  • 20-day free look period (ID Code 41-1935)
  • 30-day grace period (ID 41-1904)
  • Timely payment of claims is required within two months of the receipt of proof of death (ID 41-1913)
  • Insurers must pay interest on claims not paid within 30 days (ID Code 41-1337)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Illinois

  • Illinois’ life insurance laws are governed by Chapter 215 of the Illinois Compiled Statutes
  • 10-day free look period (215 ILCS 5/224)
  • 30-day grace period (215 ILCS 5/224)
  • Insurance companies must pay claims within two months of proof of the insured’s death (215 ILCS 5/224)
  • Claims not paid within 31 days may accrue interest (215 ILCS 5/224)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Indiana

  • Indiana’s life insurance laws are governed by Title 27 of the Indiana Code
  • 10-day free look period (IN Code Ann. 27-1-12-43)
  • 30-day grace period (IN 27-1-12-5)
  • Insurers must pay interest on claims that aren’t paid within 30 days (IN 27-1-12-35)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Iowa

Kansas

  • Kansas’ life insurance laws are governed by Chapter 40 of the Kansas Statutes
  • 10-day free look period (KS Admin Regs. 40-2-15)
  • 31-day grace period on all payments except the first payment (KS 40-434)
  • Insurers must pay interest on claims that take more than 10 days to settle (KS Stat Ann. 40-447)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Kentucky

  • Kentucky’s life insurance laws are governed by Chapter 304 of the Kentucky Revised Statutes
  • 10-day free look period (KY Rev. Stat Ann. 304.15-010)
  • 30-day grace period (KY 304.15-060)
  • Insurers must pay interest on claims not paid within 30 days (KY Rev. Stat Ann. 304.12-235)
  • Guarantees up to $300,000 for lost death benefits and $100,000 compensation for cash surrender

Louisiana

  • Louisiana’s life insurance laws are governed by Title 37 of the Louisiana Administrative Code
  • 10-day free look period (LA Rev Stat. Ann. 22:931)
  • 31-day grace period (LA 37:8305)
  • The insurance company must pay claims within 30 days of receipt of proof of death (LA 22:1892)
  • Interest accrues on claims that take more than 20 days to settle (LA 22:908)
  • Guarantees up to $500,000 per occurrence

Maine

  • Maine’s life insurance laws are governed by Title 24 of the Maine Revised Statutes
  • 10-day free look period (ME Rev. Stat Ann. Tit. 24-A 2515-A)
  • 30-day grace period (ME Title 24:2505)
  • Any claims not paid within 30 days are subject to interest (ME Title 24:2436)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Maryland

  • Maryland’s life insurance laws are governed by Title 31 of the Code of Maryland Regulations (COMAR)
  • 10-day free look period (MD Code Ann. Insurance 16-101)
  • 30-day grace period (MD 16-202)
  • If the claim is not settled within 30 days after all documents have been submitted, it begins to accrue interest (MD 16-109)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Massachusetts

  • Massachusetts’ life insurance laws are governed by Title 22 of the Laws of Massachusetts (Chapter 175)
  • 10-day free look period (MA Gen Laws Ann. ch. 175 §187H)
  • 30-day grace period on all payments made after the first year (MA ch. 175 §132)
  • If the claim is not settled within 30 days, it begins to accrue interest (MA ch. 175 §119C)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Michigan

  • Michigan’s life insurance laws are governed by Act 218 of the Michigan Insurance Code
  • 10-day free look period (MI Comp. Laws Ann. 500.4000)
  • One-month grace period on all payments made after the first year (MI 500.4012)
  • Interest accrues beginning 60 days after proof of death (MI 500.2006)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Minnesota

Mississippi

  • Mississippi’s life insurance laws are governed by Title 83 of the Mississippi Code
  • 10-day free look period (MS 83-7-51)
  • 31-day grace period for all payments after the first one (MS 83-9-5)
  • Death benefits start to accrue interest from the time of the insured’s death (MS 83-7-6)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Missouri

Montana

  • Montana’s life insurance laws are governed by Title 33 of the Montana Code
  • 10-day free look period (MT Code Ann. 33-15-415)
  • 30-day grace period  (MT 33-20-104)
  • Insurers must pay claims within 30 days, which can be extended to 60 days if the insurance company makes a reasonable request for more time to review (MT 33-18-232)
  • Claims that take longer than 30 days to settle are subject to interest (MT 33-20-114)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Nebraska

  • Nebraska’s life insurance laws are governed by Chapter 44 of the Nebraska Revised Statutes
  • 10-day free look period (NE Rev. St. 44-502.05)
  • One-month grace period for all payments after the first one (NE 44-502)
  • Claims that take longer than 30 days to settle are subject to interest (NE 344-3-143)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Nevada

  • Nevada’s life insurance laws are governed by Title 57 of the Nevada Revised Statutes
  • 10-day free look period (NV ST 688A.010)
  • 30-day grace period (NV 688A.060)
  • Insurers must pay claims within two months after receiving proof of death (NV 688A.140)
  • Claims that take longer than 30 days to settle are subject to interest (NV 688A.410)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

New Hampshire

  • New Hampshire’s life insurance laws are governed by Title 37 of the New Hampshire Revised Statutes
  • 10-day free look period (NH Code Admin. R. Ins 401.05)
  • 31-day grace period for all payments following the first one (NH 415:18)
  • Your insurance company is required to pay the amount to the beneficiary within 30 days after the provider receives proof of death, and they must pay accrued interest on the proceeds for any late settlements (NH 408:10-a)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender

New Jersey

New Mexico

New York

  • New York’s life insurance laws are governed by Article 32 of New York Consolidated Law
  • 10-day free look period (NY Ins. 3203)
  • 61-day grace period after the first payment (NY 3203)
  • The insurance company is required to pay accrued interest on the death benefit beginning from the date of the insured’s death (NY 3214)
  • Guarantees up to $500,000 in lost benefits per person

North Carolina

  • North Carolina’s life insurance laws are governed by Chapter 58 of the North Carolina General Statutes
  • 10-day free look period (NC Gen. Stat. 58-60-15)
  • 31-day grace period on all payments but the first one (NC 58-58-22)
  • If the claim is not settled within 30 days after all documents have been submitted, the account begins to accrue interest (NC 58-58-110)
  • Guarantees up to $300,000 for all benefits per insured individual

North Dakota

  • North Dakota’s life insurance laws are governed by Title 26.1 of the North Dakota Century Code
  • 20-day free look period (ND Cent. Code 26.1-33-02.1)
  • 31-day grace period (ND 26.1-33-05)
  • Insurers must pay claims within two months, and death benefits accrue interest beginning from the date of death (ND 26.1-33-05)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Ohio

  • Ohio’s life insurance laws are governed by Title 39 of the Ohio Revised Code
  • 10-day free look period (OH Rev. Code Ann. 3901-6-03)
  • One-month grace period for every payment after the first (OH 3915.05)
  • Claims accrue interest beginning from the date of death (OH 3915.052)
  • Guarantees up to $300,000 for lost death benefits and $100,000 compensation for cash surrender value

Oklahoma

  • Oklahoma’s life insurance laws are governed by Title 36 of the Oklahoma Statutes
  • 10-day free look period (36 OK Stat. Ann. 4003.1)
  • 30-day grace period (36 OK 4003)
  • Claims that take longer than 30 days to settle are subject to interest (36 OK 4030.1)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Oregon

  • Oregon’s life insurance laws are governed by Title 56 of the Oregon Revised Statutes (Chapters 731 to 752)
  • 10-day free look period (OR Admin R. 836-051-0005)
  • 30-day grace period (OR 743.165)
  • If the claim takes longer than 30 days to settle, the insurance company is required to pay accrued interest on the proceeds, dating back to the death of the insured person (OR 743.165)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Pennsylvania

  • Pennsylvania’s life insurance laws are governed by Title 31 of the Pennsylvania Code
  • 10-day free look period (40 PA ST 510c)
  • 31-day grace period (31 PA 82.24)
  • If the claim takes longer than 30 days to settle, the insurance company is required to pay accrued interest on the proceeds, dating back to the death of the insured person (40 PA ST 511b)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender

Rhode Island

  • Rhode Island’s life insurance laws are governed by Chapter 27 of the Rhode Island Code
  • 20-day free look period (RI Gen. Laws 27-4-6.1)
  • 31-day grace period (RI 27-4-6.2)
  • Interest starts accruing on death benefit payments upon the death of the insured person (RI 27-4-26)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

South Carolina

  • South Carolina’s life insurance laws are governed by Title 38 of the South Carolina Code of Laws
  • 10-day free look period (SC Code Ann. 38-63-220)
  • 31-day grace period (SC 38-63-220)
  • Interest starts building if the account is not settled within 30 days of the death of insured person (SC 38-63-80)
  • Guarantees up to $300,000 for lost death benefits per insured individual

South Dakota

  • South Dakota’s life insurance laws are governed by Title 58 of the South Dakota Codified Laws
  • 10-day free look period (SD Codified Laws 58-15-8.1)
  • 30-day grace period (SD 58-15-13)
  • Insurers must pay interest on all death benefit claims not paid within 60 days of death or receipt of the claim, whichever is later (SD 58-15-26.1)
  • Guarantees up to $300,000 per individual

Tennessee

  • Tennessee’s life insurance laws are governed by Title 56 of the Tennessee Code
  • 10-day free look period (TN Admin Code 0780-01-40-.02)
  • 31-day grace period for all payments except the first one (TN 56-7-2305)
  • Insurers are required to pay interest on death benefits beginning 15 days after the insured’s death (TN 56-7-315)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Texas

  • Texas’ life insurance laws are governed by Title 28 of the Texas Administrative Code and the 2005 Texas Insurance Code
  • 10-day free look period (28 TX Admin Code 3.804)
  • 31-day grace period for all payments after the first (28 TX 3.5106)
  • Insurers must pay claims within two months after receiving proof of death (28 TX 3.5106)
  • Claims are subject to interest from the date proof of loss is received (TX 542.058)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Utah

  • Utah’s life insurance laws are governed by Title 31A of the Utah Code
  • 10-day free look period (UT Code Ann. 31A-22-423)
  • 31-day grace period (UT 31A-22-402)
  • Claims not paid within 15 days of the life insurance company completing its investigation are subject to interest (UT 31A-26-301)
  • Guarantees up to $500,000 for lost death benefits and $200,000 for lost cash surrender value

Vermont

  • Vermont’s life insurance laws are governed by Title 8 of the Vermont Statutes
  • 10-day free look period (VT Admin Code 4-3-4:3)
  • 30-day grace period (8 VT 3731)
  • The insurance provider is required to pay the death benefit to the beneficiary within 30 days of receiving proof of death (8 VT 3731)
  • Claims accrue interest beginning from the date of death (8 VT 3665b)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Virginia

  • Virginia’s life insurance laws are governed by Title 38.2 of the Virginia Code
  • 10-day free look period (VA Code Ann. 38.2-3300)
  • 31-day grace period (VA 38.2-3303)
  • Interest accrues on claims beginning from the date of death (VA 38.2-3315)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value or withdrawal

Washington State

  • The State of Washington’s life insurance laws are governed by Title 48 of the Revised Code of Washington
  • 10-day free look period (WA ST 48.23.380)
  • 30-day grace period (WA 48.23.030)
  • The company is required to add interest payments to the total benefit, beginning from the day of death (WA 48.23.300)
  • Guarantees up to $500,000 per person for lost death benefits and $500,000 for lost cash surrender value

Washington, D.C.

West Virginia

  • West Virginia’s life insurance laws are governed by Chapter 33 of the West Virginia Code
  • 10-day free look period (WV 33-6-11b)
  • 31-day grace period (WV 33-13-3)
  • Insurers must pay claims within two months (WV 33-13-3)
  • Interest accrues on the payment beginning from the date of death (WV 33-13-14a)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value

Wisconsin

Wyoming

  • Wyoming’s life insurance laws are governed by Title 26 of the Wyoming Statutes
  • 30-day free look period (WY Admin Code Ins Gen Ch 12 §4)
  • 31-day grace period (WY 26-17-111)
  • If the claim takes longer than 45 days to settle, the insurer must pay interest beginning from the date of death (WY 26-16-112)
  • Guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender

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How can I contact my state with a life insurance question?

Need to get in touch with your state insurance department? Go to naic.org

Need help with your or a loved one’s coverage? Your state’s department of insurance can help you understand your rights, find a licensed agent, file an insurance complaint, or locate the policy of a deceased family member. The National Association of Insurance Commissioners has a database of all state insurance departments to help you find the right contacts.

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