Key Takeaways
- Connecticut requires a 10-day free look period for standard life insurance policies
- Life insurance policies must include a 2-year incontestability clause under Connecticut law
- Suicide exclusion in Connecticut is limited to 2 years from policy issue date
- Connecticut requires a 31-day grace period for premium payments
- The Connecticut Insurance Department (CID) regulates all life insurance
Connecticut Life Insurance Policy Requirements
Connecticut law imposes specific requirements on life insurance policies sold in the state. The Connecticut Insurance Department (CID) regulates life insurance to protect consumers.
Free Look Period
Connecticut provides a standard free look period for life insurance:
| Policy Type | Free Look Period |
|---|---|
| Standard Life Policy | 10 days |
| Replacement Policy | 10 days |
| Long-Term Care | 30 days |
| Annuities | 10 days |
During the free look period, the policyholder can:
- Review the policy thoroughly
- Return it for a full refund of premiums paid
- No questions asked, no penalty charged
Exam Tip: Connecticut uses the standard 10-day free look period. Long-term care insurance has an extended 30-day free look.
Incontestability Clause
Connecticut requires a 2-year incontestability clause in all life insurance policies:
- After 2 years from issue, the insurer cannot contest the policy based on misstatements
- Exceptions: Fraud, non-payment of premiums
- The clause protects beneficiaries from claim denials due to application errors
Suicide Clause
Connecticut limits the suicide exclusion:
- Suicide exclusion cannot exceed 2 years from policy issue
- After 2 years, death by suicide is covered at full face value
- If policy is reinstated, a new 2-year period may apply
- Return of premiums required if suicide occurs within exclusion period
Standard Policy Provisions
Connecticut requires life insurance policies to include specific provisions:
Required Provisions
| Provision | Requirement |
|---|---|
| Grace Period | Minimum 31 days for premium payment |
| Entire Contract | Policy and application constitute entire contract |
| Misstatement of Age | Adjustment of benefits rather than voidance |
| Reinstatement | Right to reinstate within 3 years if lapsed |
| Policy Loan | Available for cash value policies |
| Nonforfeiture Options | Required for cash value policies |
Grace Period Details
- 31 days minimum grace period for premium payments
- Coverage continues during grace period
- Policy cannot be canceled for non-payment until grace period expires
- Death benefits paid minus any overdue premium if insured dies during grace period
Nonforfeiture Options
Connecticut requires cash value life insurance to offer nonforfeiture options:
| Option | Description |
|---|---|
| Cash Surrender | Receive cash value minus any loans |
| Reduced Paid-Up | Continue coverage at reduced amount |
| Extended Term | Same face amount for limited period |
Beneficiary Protections
Connecticut has specific beneficiary protection laws:
- Death benefits must be paid promptly upon valid claim
- Interest accrues if payment is delayed beyond 30 days
- Insurers must act in good faith to locate beneficiaries
How long is the free look period for a standard life insurance policy in Connecticut?
What is the minimum grace period required for life insurance premium payments in Connecticut?
After what period does the incontestability clause take effect in Connecticut?