Maine Life Insurance

Maine 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 Maine life insurance regulations.

  • Explains the protection of the Maine Guaranty Association.

  • Links to more information about life insurance in Maine

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Maine life insurance rights and regulations

The life insurance industry in Maine is regulated under Title 24 of the Maine Insurance Code. Under these codes, claims procedures and policy requirements are overseen by the state in order to protect you, the consumer.

One such protection lies in the 30-day grace period all Maine insurers must allow on late life insurance premium payments. A policy will not be cancelled for the first 30 days without payment, and will continue uninterrupted so long as the account is brought current.

And while Maine law does not require a "free look" provision, this consumer-friendly feature is still offered by many insurers. The provision allows a new policyholder to decline coverage (and recieve a refund of premiums) during the first 10, 20, or 30 days of the policy, depending on the insurer.

However, Maine law extends some protections to insurers, too. Each insurer may follow their own claims procedure, so long as it results in the timely settlement of claims. Your insurer's procedure should be outlined in your policy.

Insurers also have two years to discover any misstatements on a policy or application. If any are found, the insurer can cancel the policy. Misstatements of age will usually be corrected by adjusting the benefits to reflect the actual age of the insured.

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If you are ready to apply for a Maine term life insurance policy, or if you just want a quick online quote, visit Efinancial 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 Maine Life Insurance Guaranty

The Maine Life and Health Insurance Guaranty Association helps protect policyholders in Maine against an insurance company's failure. An insurer pay fees to the organization, which, in turn, covers part of its policies if the company goes bankrupt.

The protection does have limits, though. The maximum compensation for death benefits in Maine is $300,000 and the maximum compensation for cash surrender is $100,000. And in order to receive the protection this organization offers, your policy must be backed by an insurance company licensed in Maine. To find out the status of your life insurance company, contact the Department of Professional and Financial Regulation at 1-800-300-5000.

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Apply for a quote with confidence at Efinancial
(for Maine term life insurance), or InsureME.
Your insurer will be licensed in Maine.

Viatical settlements

Viatical settlements, which are purchasing agreements between a third party and an insured, are allowed in the state of Maine. Under these arrangements, the third party buys a policy from the insured, pays the premiums, and becomes the policy's beneficiary. It's a good idea to contact a licensed agent before arranging a viatical settlement.

More ME life insurance help

If you want more help getting the best value on your ME 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 ME life insurance laws and regulations, visit the state's official website at the Maine Department of Professional and Financial Regulation, Bureau of Insurance.

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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