Kentucky Life Insurance
- Laws governing life insurance transactions can vary widely by state. Be a smart consumer by learning the ins and outs of Kentucky life insurance policies.
According to a 2020 financial services study, approximately 41 million consumers nationwide reported a need for life insurance coverage but hadn’t yet purchased a policy. If you're part of that group, it may be time to start shopping, but finding a policy that suits your family’s needs and budget can be challenging. To get the best value for your money, it's important to understand the laws that govern life insurance transactions in your state. Here’s what you need to know about purchasing life insurance in Kentucky.
Kentucky Life Insurance Rules and Specifics
Life insurance professionals in Kentucky must adhere to the laws defined in the Kentucky Revised Statutes, Chapter 304, with Kentucky’s Department of Insurance providing oversight and enforcement. These laws create standardization across the industry and include several provisions that ensure a fair marketplace for consumers, including:
- Free look period. Kentucky consumers may cancel a life insurance policy within 10 days of issue for any reason, and the company must provide a full refund, including administrative fees. This free look period is intended to let policyholders thoroughly review their plan before being locked in to a contract.
- Late payment grace period. Policyholders who are late making a premium payment have 30 days to bring their account current. Issuers may not cancel a policy for nonpayment or reduce benefits during this period.
- Death benefit interest. State law requires life insurance companies to pay interest on claims that aren’t paid within 30 days of filing as long as proof of death was supplied.
- Insolvency protection. A guaranty association, consisting of state-licensed insurers, must provide coverage for consumers affected by the liquidation of a policy issuer.
Life Insurance Resources in Kentucky
Kentucky consumers can seek general information about life insurance and the consumer protections provided through several organizations, including the Kentucky Department of Insurance, the Insurance Institute of Kentucky and the Kentucky Life & Health Insurance Guaranty Association.
Kentucky Department of Insurance
The Kentucky Department of Insurance provides various consumer services, including:
- A list of statutes and regulations
- Life insurance-related publications
- A consumer complaint form
- Online fraud reporting
- Company and license lookups
- Links to additional resources such as policy locator services
Insurance Institute of Kentucky
The Insurance Institute of Kentucky is a nonprofit organization that educates and supports policyholders and other interested consumers. The institute offers an overview of life insurance and annuities and provides links to additional resources, such as lost policy locator services.
Kentucky Life & Health Insurance Guaranty Association
Under state law, all Kentucky-licensed life insurance and annuity companies must belong to the Kentucky Life & Health Insurance Guaranty Association. The guaranty association provides continuing coverage for policyholders if a member company is liquidated after becoming insolvent.