Minnesota Life Insurance
- Minnesota life insurance policies follow state-mandated regulations to ensure reliable coverage. Read here to learn how these rules may affect your policy.
As you’re shopping around for a Minnesota life insurance policy, it’s helpful to know what rules and protections are in place for policyholders. Some policies may have provisions beyond these minimum requirements, so before signing up for coverage, it’s a good idea to read the policy’s terms and conditions.
Minnesota Life Insurance Rules and Specifics
Life insurance policies sold in Minnesota are monitored by the Minnesota Department of Commerce and comply with regulations outlined in the Minnesota Statutes, Chapter 59A-79A.
- Free Look Periods: Under Minnesota law, you’re entitled to a 10-day free look period, providing you with ample time to review the policy’s coverage and limits to ensure it’s right for you. If you decide to cancel the policy within this period, the company has to refund all the premiums paid.
- Grace Period: All life insurance policies have grace periods, ensuring that if policyholders are a few days late on their monthly payment they don’t automatically lose their coverage. For scheduled premium policies, life insurance companies have to have a grace period of at least 31 days. Flexible premium policies have grace periods of at least 61 days. During the grace period, the death benefit payable is equal to the death benefit guaranteed in the policy, minus the premium payment and overdue charges.
- Incontestability: Once you sign up for life insurance, your insurance company has two years to verify the information you provided during the application process. After that, the insurer can’t deny a claim based on a misstatement.
- Prompt Claims Settling: In Minnesota, life insurance companies have 60 days to settle a claim. If they take longer than this, the money that they owe to the beneficiary accrues interest.
- Guarantee of Death Benefits: While it’s rare for a life insurance company to go bankrupt, it can happen, leaving policyholders and their beneficiaries in a vulnerable financial position. If a life insurance company becomes insolvent and can’t fulfill its financial obligations, the Minnesota Life and Health Insurance Guaranty Association provides up to $500,000 for death benefits and up to $130,000 for cash surrender value.
Life Insurance Resources in Minnesota
Minnesota Department of Commerce
The Minnesota Department of Commerce regulates insurance policies sold within the state. It publishes up-to-date information on legislation that affects life insurance policies and results for financial examinations and statements for insurers.
Minnesota Life and Health Insurance Guaranty Association
The Minnesota Life and Health Insurance Guaranty Association is made up of all insurers who sell policies in the state. It protects policyholders by paying death benefits and cash surrender values if a life insurance company becomes insolvent.
Minnesota Attorney General
The Minnesota Attorney General fields and investigates complaints regarding life insurance companies in the state. If an insurer doesn’t handle your claim properly, the Office of the Attorney General can help resolve the issue.