The grace period might be as little as 24 hours or as long as 30 days, depending on the insurance coverage. The length of time an insurance grace period is allowed is specified in the insurance policy contract. The insurance provider may impose a financial penalty if you pay beyond the due date.
What are insurance appointments?
An appointment is when a producer registers with the state insurance agency to act on behalf of an insurer. Several provisions of the PLMA deal with appointments. A producer operating as an agent for an insurer must have an appointment, according to Section 14 of the PLMA.
How often must the superintendent examine each admitted insurance company?
According to the NAIC Model Law on Examinations, any insurer permitted to do business in the state must be examined at least once every five years by the state insurance regulator.
Which of the following is a valid reason for an enrollee to be Cancelled by a health maintenance?
For which of the following reasons could a Health Maintenance Organization (HMO) enrollee’s coverage be discontinued or nonrenewed? Failure to pay insurance premiums. Failure to pay for coverage may result in a Health Maintenance Organization (HMO) enrollee’s policy being cancelled or nonrenewed.
Who is liable when an insured suffers a loss?
When agents and brokers make mistakes and fail to fulfill their responsibilities, they can be held accountable.
When it comes to insurance agents, a policyholder can sue both the insurance company and the individual agent liable. This is due to the fact that agents work for insurance companies, and both an agent and a principal can be held accountable for an agent’s mistakes. Brokers, on the other hand, because they do not work for insurance firms, can be held personally accountable.
There are a variety of reasons why an agent or broker could be held liable for a client’s insurance issue. The following are some of the most common reasons:
- Failure to secure the appropriate sort of coverage to meet a company’s or individual’s demands.
- Failure to secure a sufficient quantity of coverage to cover a loss or give protection against specific risks.
- Even after receiving a premium payment from a client, failing to obtain any insurance.
- Failure to inform clients of any changes made by the agent/broker without first informing them.
- Providing false information about the amount of insurance coverage acquired or the scope of the damages covered by the insurance policy.
Although clients may desire a specific type or amount of insurance coverage, it is sometimes important for agents/brokers to convey to clients that a different form of coverage may be required to meet their insurance needs.
How long is the typical free look period?
- The free look period is a certain amount of time, usually 10 days or more, during which a new life insurance policy owner can cancel the policy without incurring any penalties, such as surrender charges.
- If a policyholder is dissatisfied with the policy’s terms and conditions, they can cancel and return the policy at any time during the policy’s term and receive a full refund.
What triggers long-term care benefits?
Before most long-term-care insurance policies will pay out, you must either need assistance with two of the six activities of daily living (which include bathing, dressing, toileting, eating, transferring, and continence) or have serious cognitive impairment. According to Mike Ashley, owner of Senior Benefits Consultants in Prairie Village, Kan., your doctor will need to fill out a form with the facts, and the insurer may want additional medical documents or a cognitive assessment to establish impairment.
What is a life settlement intermediary?
The New York State Insurance Department’s viewpoint was represented by the Office of General Counsel, which issued the following opinion on June 30, 2010.
Questions Presented:
1. Is the technology company mentioned in the first scenario below a life settlement intermediary as defined by Chapter 499 of the Laws of 2009 (the “Life Settlement Act”)?
2. Does the technology firm mentioned in the second scenario below qualify as a life settlement mediator under the Life Settlement Act?
Conclusions:
1. No, according to the Life Settlement Act, the technological firm stated in the first scenario is not a life settlement intermediary. However, unless the technology firm is an authorized representative of any life settlement broker or life settlement provider who subscribes to and uses the technology firm’s system, and complies with the privacy requirements set forth in new Insurance Law 7810, the technology firm cannot obtain confidential information (a).
2. The answer is yes. According to new Insurance Law 7804, the technology firm stated in the second scenario below would be a life settlement intermediary for the purposes of the Life Settlement Act, and would thus be obliged to register with the Insurance Department as a life settlement intermediary.
Facts:
According to the inquirer, he works for a technology company that leases a business operating system created exclusively for life settlement market participants. Users, including life settlement brokers and providers, can publish and retrieve confidential documents and information relating to future life settlement transactions in a secure, encrypted format, according to the initial scenario presented by the inquirer. The user leases the “do it yourself technology” and pays a subscription-based access fee to use the system, according to the inquirer. All talks take place off-line, including the creation of offers and counteroffers. The mechanism does not electronically convey bids and counteroffers, according to the inquirer.
The system is also not involved in the life settlement transaction, according to the inquirer, other than providing a vehicle for the secure and encrypted exchange of communications and information. The inquirer claims, however, that the system stores data about life settlement provider offers in the same way that a market participant’s internal database would keep the transactional history associated with a life settlement transaction.
The inquirer reports that in the future, the technology firm’s system described in the first scenario may allow life settlement providers to enter offers for a life insurance policy directly into a life settlement broker’s database, which the life settlement broker would be able to access at its leisure. The system will merely save the data, according to the inquirer, and will not be involved in the life settlement transaction.
The inquirer wants to know if the technology firm in the first and second situations is a life settlement intermediary under the Life Settlement Act.
Analysis:
Governor David A. Paterson signed Chapter 499 of the Laws of 2009 into law on November 19, 2009, repealing Article 78 of the Insurance Law and adding a new Article 78 entitled, “Living Trusts.” 1With the exception of new Insurance Law 7810, 7811, and 7815, which pertain to privacy, disclosures to owners and insureds, and stranger-originated life insurance, Chapter 499 went into force on May 18, 2010 “STOLI”), both of which went into effect on November 19, 2009.
The inquirer’s inquiry is addressed by New Insurance Law 7802(l), which defines a “life settlement intermediary” as “a person who maintains an electronic or other facility or system for the disclosure, through a forum of offers and counteroffers, to sell or purchase a policy pursuant to a life settlement contract; and delivers to: (1) a life settlement provider an offer to sell a policy; or (2) an owner or life settlement broker an offer to sell a policy.” “Any natural person or legal entity, including a partnership, limited liability company, association, trust, or corporation,” according to New Insurance Law 7802(o).
Which of the following actions is required by an agent who is replacing an existing life insurance policy?
When replacing a life insurance policy, an agent must collect a list of all life insurance to be replaced, sign the “Notice of Replacement” with the application and the replacement insurer, leave a copy of all sales pitches with the applicant, and submit to the replacing insurer.