Denied or delayed life insurance claims are common. Claims are frequently denied by life insurance companies because of misrepresentation. It means that the policy holder gave out false information, such as health history, age, and preexisting conditions. This act makes the policy invalid. Thus, make sure to disclose every vital information if you get insurance in Minnesota.
The federal government has allowed the states to regulate the insurance industries and provide consumer protection. Minnesota has life insurance laws that protect consumers. For example, Chapters 59A to 79A of the Minnesota Statutes form the primary regulatory force governing the insurance industry. The Minnesota Department of Commerce is the body that provides oversight for the insurance business in said state.
An independent insurance agency abides by the insurance protection laws provided by the state. One example of a protection law is the “free look” period wherein you are given seven (7) to thirty (30) days to change your mind after obtaining life insurance and receive a full refund of any premiums you have already paid. Laws also provide that an insurance policy cannot be canceled due to a reasonably late payment. While there is no specific time limit for insurance companies to settle claims, they are mandated to add interest payments to the total benefit starting from the date of death.