Oklahoma Life Insurance
- Oklahoma families can secure protection for their financial needs through life insurance. Know what your rights are under Oklahoma life insurance laws.
With an average life expectancy of 75.6 years, Oklahoma residents may benefit from life insurance, which provides financial protection for families and loved ones if the insured individual dies. Before choosing a policy and provider, you should understand your options and know what your rights are under Oklahoma life insurance laws.
Oklahoma Life Insurance Rules and Specifics
The Oklahoma Insurance Department is the main regulatory body for life insurance entities in Oklahoma, enforcing the laws defined in TItle 36 of the Oklahoma Statutes. These regulations include provisions that safeguard consumer rights, including a grace period for late premiums, the timely payment of claims and continued coverage in the wake of a provider's insolvency.
Grace Period for Late Premiums
Oklahoma law mandates a 31-day grace period for policy owners who have failed to make a scheduled premium payment. Coverage remains active during this period, with no reduction in benefits, and beneficiaries receive a death benefit payout if the insured individual passes away. Consumers may enter this grace period after each occurrence of a late payment.
Timely Payment of Claims
When a claim is filed along with proof of death, the insurance company must pay out the contractual benefit within 30 days. Claims that are not settled within this timeframe are subject to interest accrual, and the issuing company may be assessed fines or sanctions.
Coverage After Insolvency
Oklahoma policyholders are protected under law against the loss of their life insurance coverage due to an issuing company's insolvency. Continuing coverage is provided through the Oklahoma Life & Health Insurance Guaranty Association. This statutory organization covers up to $300,000 of lost death benefits and up to $100,000 of a policy's cash surrender value.
Life Insurance Resources in Oklahoma
Consumer assistance for current life insurance policyholders, shoppers and designated beneficiaries is available through the Oklahoma Insurance Department. On the OID's website, consumers can:
- View the agency's knowledge database
- Request information or help from the OID's Consumer Assistance Division
- File a complaint about an insurance company or agency
- Report fraudulent activities
- Locate a lost policy
- Learn about the licensing process
- Sign up for a webinar
Consumers who don't find what they're looking for at the OID may also seek assistance at one of these additional resources:
- National Association of Insurance Commissioners: NAIC's consumer arm has resources designed for individuals at every stage of the buying process. The association's website includes a glossary of insurance terms, useful apps and a company search that returns information about a business's license, financial health and any complaints filed against them.
- AM Best: AM Best provides credit ratings and other financial information related to life insurance companies, so consumers can make informed choices.
- American Council of Life Insurers: The ACLI's consumer page includes a glossary of life insurance terms, an explanation of policy risk classifications and information on unclaimed life insurance benefits.