Kansas Life Insurance
- Life insurance can provide financial protection for your family when you die. Learn more about the rules regulating Kansas life insurance and how they affect you.
Accidents are one of the leading causes of death in Kansas, but the right life insurance policy can provide financial protection for your family if you die unexpectedly. Navigating the wide array of available plan choices and providers can be challenging, and laws governing coverage vary from state to state, making the decision more complicated. Find out what you need to know about the rules regulating life insurance in Kansas, and what they mean for you and your loved ones.
Kansas Life Insurance Rules and Specifics
Guided by the legislation outlined in Chapter 40 of the Kansas Statutes, the Kansas Insurance Department oversees life insurance transactions throughout the state. Chapter 40, which was created to ensure industry standards and protect consumers, includes the following important provisions.
- 10-day trial period: Kansas consumers are entitled to a 10-day free look period after purchasing a life insurance policy. If a policyholder isn’t satisfied with their coverage during this trial period, which begins on the date of issue, they may cancel their policy without penalty and receive a full refund.
- 31-day grace period: Kansas insurance companies must grant policyholders a 31-day grace period for late payments. During this period, the issuer may not legally cancel the policy for nonpayment or reduce the contractual benefits. However, this law doesn’t apply to the initial payment.
- Late-payout interest accrual: Kansas law requires insurers to pay interest on life insurance claims that aren’t settled within 10 days.
Life Insurance Resources in Kansas
State residents who need assistance with insurance-related matters may seek assistance through the Kansas Insurance Department. The department serves as an unbiased consumer information resource, providing education and advocacy to policyholders, beneficiaries and anyone else who wants to learn about their rights under Kansas law. On the department’s website, consumers will find:
- A shopper’s guide to life insurance and annuities
- An online consumer complaint form
- An online fraud reporting system
- Information about selling a policy
Kansas consumers who need additional assistance for specific concerns such as lost policies and failed issuers may reach out to the following agencies:
- National Association of Insurance Commissioners: Beneficiaries who need help locating a lost policy may request a search through NAIC’s policy locator service. Using the name of the deceased, participating companies search their records for applicable life insurance policies or annuity contracts.
- Kansas Life & Health Insurance Guaranty Association: The state’s guaranty association is a private organization that protects policyowners when a plan's issuing company fails. Through the guaranty association, parties may receive coverage for up to $300,000 in lost death benefits and up to $100,000 for a policy’s lost cash-surrender value if the company of issue is liquidated.
- AM Best: Consumers looking to purchase a policy can view AM Best's company ratings. The agency assesses creditworthiness so consumers can make informed decisions.