The benefits of a life insurance policy goes beyond what people usually think. Some don’t even bother with such policies because, in their opinion, this is “poorly-spent” money. In the prospect of an unfortunate event, however, these policies could ensure the well-being of your family.
Policyholders can choose between several types of policies. Each comes with its own legal regulations and provisions. Life insurance policies can be chosen by anybody, and are recommended for those who financially sustain others. For instance, it’s better for parents to be holders of insurance products, than it is for children. In the prospect of the sudden death or disability of a financial pillar of the family, the remaining members will have monetary aid to rely on. The same goes for a family member who doesn’t want to leave other members of their family with the burden of debt, in the case of a sudden death.
But before investing in insurance products, you should know more about the rules and regulations that usually apply. Each state has its own provisions and regulations in regards to this matter. In Wisconsin, The Wisconsin Statutes And Annotations is the source for insurance regulations. There are two chapters that directly influence life insurance in this state: the 600 and 655 chapter. These regulations are designed to protect both insurance companies and policyholders.
Life Insurance Policies in Wisconsin – Provisions Required in All Policies
The state of Wisconsin doesn’t allow insurance agents to issue policies that are ambiguous or unclear in their marketing attempts and sales. All insurance intermediaries must follow the rules below:
- Each policy should include a clear and accurate description of each separate benefit and aspect covered by the policy.
- The grace period for which every life insurance policy remains active. The policyholder must be entitled to a grace period that is never less than 30 days out for payment.
Without any exceptions, all life insurance policies must include relevant information on the topics presented above.
Life Insurance Policies and Variable Contracts in Wisconsin
The term “variable contract” or “contract on a variable basis” designates a policy which offers coverage depending on the investment experience of any separate account maintained by the insurer. Each contract on a variable basis must state on its first page that the benefits or coverage offered may vary. It should also include a clear example of these variations, as well as the exact location of these provisions in the contract.
Variable contracts should clearly state that the dollar amount of benefits may increase or decrease.
The Age on My Policy is Wrong – What Happens?
As a policyholder in Wisconsin, you are obligated to signal to your life insurance agency any errors related as soon as you notice a discrepancy. In Wisconsin, the insurer is not liable for death benefits if the policyholder was older than the age limit set by the insurer who issued the policy.
Can My Insurer Contest Individual Life Insurance Policies?
In Wisconsin, no individual life insurance policy can be contested if the policy has been in force for two years. However, there are some EXCEPTIONS.
- In case of premiums, if the policyholder isn’t paying their monthly fees, the issuing party can contest the policy.
- Also, if the policyholder misstates their age, the insurance contract can be contested.
- In case of fraudulent misrepresentation in disability coverage cases, the policy issuer can contest the individual life insurance policy.
Wisconsin Laws on Individual Life Insurance Policy Transfers
Unless the beneficiary of the policy is irrevocable, the policy benefits can be transferred to any person the policyholder designates.
Specific Laws on Designating Beneficiaries in the State of Wisconsin
The holder of a life insurance policy in Wisconsin or annuity contract has the unrestricted right to designate an irrevocable beneficiary. In case the beneficiary is not irrevocable, they have the unrestricted right to change it, without the consent or knowledge of the previous beneficiary. For instance, if the holder of a life insurance policy first designated their daughter as the beneficiary of the policy and the policy had no restrictions in terms of changing the beneficiaries, the policyholder has the right to designate another relative as a beneficiary, without informing their daughter first.
How Are Life Settlements Described in Wisconsin?
The Wisconsin law describes life settlements as a transaction in which the policyholder sells the policy for an amount less than the death benefit, as stated in the section 632.69 of the Wisconsin Statutes and Annotations.
A Life Insurance Broker in Wisconsin Asked Me to Get Tested for the Presence of the Antibody to HTLV-III. Is this Legal?
According to the laws in Wisconsin, all brokers have the right to proceed. However, life insurance brokers cannot deny an HIV patient the right to a life insurance policy or deny death benefits, if the death occurred as a reaction to the virus.
Protection of Personal Information in Wisconsin
Insurers in the state of Wisconsin are not allowed to share client information without their written consent. The state law protects all personal information shared with insurance brokers, from medical files and history to other types of sensitive information. To make sure that your insurance broker follows consumer privacy protection standards, ask them outright what steps have been implemented to protect your privacy.