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Nebraska Life InsuranceNebraska life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.
This page:
Briefly describes Nebraska life insurance regulations.
Explains the protection of the Nebraska Guaranty Association.
Links to more information about life insurance in Nebraska
Life Insurance for as Little as $20/Month?
Nebraska life insurance rights and regulationsThe insurance industry in the State of Nebraska is regulated under Chapter 44 of the Nebraska Statutes. Under these statutes, claims procedures and policy requirements are overseen by the state in order to protect you, the consumer.
One such consumer protection is the 10-day "free look" provision included, by law, on all Nebraska life insurance policies. During this time, a new policyholder can choose to decline the coverage and still receive a full premium refund.
Nebraska policyholders are also guaranteed a 31-day grace period on late payments. An insurer won't cancel a life insurance policy during this period, and coverage will continue uninterrupted so long as the account is brought current.
Nebraska life insurance companies should also always settle claims within 2 months of receiving proof of death. If settlement is not finalized within 30 days of receipt, the proceeds will begin to collect interest. (A description of the exact claims procedure followed by your insurer will be included the text of your policy.)
And while Nebraska insurance companies are not strictly forbidden to share your information, some information is privileged. Be sure to read any document you sign make sure you are not giving someone the right to disclose information you would rather keep private. If you request information from your insurer, they should respond within 15 working days.
However, Nebraska law extends some protections to insurers, too. Consumer misrepresentation on a policy or application, if discovered within the first two years of the policy, can result in its cancellation. The insurer won't be obligated to honor any claims.
A misstatement of policyholder age can be discovered at any point during the policy's life, and will result in the recalculation of benefits.
Insurers are also exempt from covering death by suicide during the first two years of a life insurance policy. Sidebar
If you are ready to apply for a Nebraska term life insurance policy, or if you just want a quick online quote, visit Insured Street now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.
The Nebraska Life Insurance Guaranty AssociationIf your life insurance policy is underwritten by a licensed insurance company, you qualify for the protection of the Nebraska Life and Health Insurance Guaranty Association. This organization helps compensate policyholders in the event of insurer bankruptcy.
However, the protection does have restrictions. Compensation for lost death benefit proceeds will not exceed $300,000 per insured individual and compensation for net cash values can't exceed $100,000 per individual.
And, only the policies of insurers licensed in Nebraska qualify for protection. You can check the status of your insurer by calling the Nebraska Department of Insurance at (402) 471-2201. Sidebar
Apply for a quote with confidence at Insured Street
(for Nebraska term life insurance), or InsureME.
Your insurer will be licensed in Nebraska.
Other notes on Nebraska life insuranceViatical settlements, which are purchasing agreements between a third party and an insured, are allowed in Nebraska. Under these arrangements, a third party buys a life insurance policy from the insured, pays its premiums, and becomes the policy's beneficiary. It's wise to seek help from a licensed agant before arranging a viatical settlement.
Insurance illustrations, which are financial projections made by an insurer, are also allowed in Nebraska. However, their content is regulated by the state. (You can check the insurance code to find the rules insurers must follow.)
More NE life insurance helpIf you want more help getting the best value on your NE life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).
To find out more about NE life insurance laws and regulations, visit the state's official website at the Nebraska Department of Insurance.
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