Maine Life Insurance
- Some state life insurance laws require issuers to provide free look periods and other protections. Understand your rights as a Maine life insurance policy owner.
According to The American Council of Life Insurers, Maine life insurance companies pay out more than $6 million in life insurance benefits and annuity payments to state residents every day. These benefits provide crucial financial protection to Maine's families and businesses, letting them carry on after the death of a breadwinner. If you're planning on purchasing a policy or just want to understand your options, here's an overview of your rights as a consumer in Maine.
Maine Life Insurance Rules and Specifics
Maine's Bureau of Insurance regulates the 300+ companies that are licensed to sell life insurance policies in the state, ensuring their compliance with the laws detailed in Title 24 of the Maine Revised Statutes. These laws help standardize the industry and offer various consumer protections for policyholders and beneficiaries:
- Free look period for new policyholders: Maine law grants new policyholders a minimum of 10 days in which to review their coverage. Companies must issue a full refund, including administrative fees and charges, to consumers who cancel a policy for any reason during this trial period.
- 30-day grace period for late payments: Maine's life insurance laws prohibit insurers from cancelling a policy for nonpayment during the late-premium grace period, which gives policyholders 30 days to bring their account current.
- Interest accrual on delayed claims payout: Insurers have 30 days from the date a claim is filed to issue the death benefit payout. Claims that remain unsettled after 30 days accrue interest, which must be paid to the named beneficiary.
Life Insurance Resources in Maine
Although your life insurance agent or company of issue can answer many of the questions you may have about your coverage options, Maine residents can also access valuable resources through several additional channels:
- State of Maine Bureau of Insurance: As the regulatory agency for the state's insurance industry, the Bureau of Insurance handles consumer complaints and offers a licensee lookup so life insurance shoppers can make sure a company is licensed by the state before making a purchase. The bureau also maintains a database of helpful guides to life insurance, annuities and viaticals for consumers who wish to learn more about their options.
- Maine Life & Health Insurance Guaranty Association: If a state-licensed company is liquidated due to insolvency, Maine's guaranty association takes over the coverage up to the amount guaranteed by law. Maine policyholders or beneficiaries who are impacted by an entity's insolvency may contact the association directly.
- NAIC's Life Insurance Policy Locator Service: Individuals who think they may have been named as beneficiaries on a deceased relative's policy may request a policy locator search. Participating companies will release information on applicable policies to designated beneficiaries and other authorized parties.