Grace Periods

• Some states have a provision in place for overdue premiums for a life insurance policy called a grace period. This means that if a payment is overdue an insured has up to 30 days to pay the premium amount before an insurer can cancel the policy. Insurers in many states are also required to send a notice of cancellation prior to terminating coverage.
  
  

Free Look Periods

• A free look period is a small amount of time in which an insured has the opportunity to decline an insurer's life insurance policy and receive a full refund. The free look period can vary from state to state and can range from 10 days to a maximum of 30 days. Some states may extend the free look period for policies that are delivered through the mail.
  
  

Claims

• Many state insurance laws have limits for the length of time an insurer can take to pay a claim on a policy. Most states require an insurer to settle a claim within 30 days once a death certificate or some other proof of death has been received. If a claim has not been settled within the time frame allowed, the death benefit will start to accrue interest.
  
  

Contesting Information

• While most state insurance laws are designed to protect the consumer there are laws that protect the insurer as well. These laws include placing a limit on the amount of time a policy needs to be in force before paying certain types of claims such as suicide. An insurer can also cancel a policy or deny a benefit payment if inaccurate information exists or a misrepresentation was made on the application.
  
  

Personal Information

• Some states also have regulations in place that restrict the release of confidential medical records and other personal history. This means that any medical records and personal information that is used by an insurer to determine eligibility need to be provided to the insured. An insurer is also required to obtain a written signature before any personal or medical history can be released.