Being aware of specific state laws related to life insurance can be hard to understand sometimes. We have made this informal guide to assist you in increasing your knowledge about Utah life insurance laws.
Utah Life Insurance Rules and Regulations
Title 31A Insurance Code is where you can find most of the laws and regulations related to life insurance in the state of Utah. Insurance code is written to protect consumers, carriers, and producers of life insurance. It contains information about standards for claim procedure, life insurance policy requirements, and so on.
Utah’s Free Look Period
Utah has not free look period required by law. Other states require life insurance carriers to let their policyholders review the policy for a period so they cancel the policy during this period anytime for a full refund. Freelook periods in other states last about 10 days. Due to their being no free look period in Utah, we advise any company you work with to ask them about their free look period policy. We also suggest you review the policy once you review it and read the illustration thoroughly before you purchase a policy.
Utah Consumer Misrepresentation
Utah Life Insurance Carriers are allowed to cancel a life insurance policy if they find that there has been misrepresentation on the applications. The life insurance carrier has two years to find that misrepresentation has occured after the signing of the policy by the consumer. After that, a policy is not eligible for termination. A Utah insurer is not obligated to pay claims or benefits if a policy is canceled for misrepresentations.
Misrepresentation on accident will just cause a policy to be canceled. It could be considered fraud if it was done on purpose. A common misrepresentation is lying about medical history, this is why it is important, to tell the truth, while completing medical history forms.
Utah Claim Payments
Utah does not specifically regulate claim procedures and lets the life insurance carriers set their own policy on these procedures. Before purchasing a life insurance policy check to see what your Utah Life Insurance carrier rules are for timely payment of claims.
If you have any questions about Utah Life Insurance rules and regulations you should contact:
Utah Insurance Department
Utah Insurance License Lookup
The Utah Insurance Department also has an insurance agent license lookup. You can look up the license of any agent you work with to confirm they are licensed here.
Utah State Guaranty
Every state usually has a guaranty association so that your purchased policy will continue to exist even if the insurance carrier does not. The Utah Life and Disability Insurance Guaranty Association was established to protect consumers like you from possibly losing your investment in any Utah Life Insurance policy. These organizations assist in ensuring you have minimal coverage in case of a Utah Life Insurance carrier insolvency or bankruptcy.
You can be compensated for up to $300,000 in lost death benefits and up to $100,000 in lost cash surrender by the Utah Life and Disability Insurance Guaranty Association. These are the maximum benefits for a single life from the association. It does not matter if you had multiple policies or purchased a policy for higher coverage. For this reason, we feel it is important you check the rating of your life insurance company so that you will never have to use this benefit or feature.
Utah Life & Health Insurance Guaranty Association
60 East South Temple, Suite 500
Salt Lake City, UT 84111
Utah Department of Insurance has also created an easy to read Life Insurance Buyer’s Guide. It explains a lot of the items we already discussed on this website. Which is why we encourage you to read our blog. It’s filled with the real dirt on what you need to know about life insurance from a critical eye.