Utah Life Insurance Policy Requirements

Utah law imposes specific requirements on life insurance policies sold in the state under Title 31A of the Utah Code. The Utah Insurance Department oversees insurance regulation.

Free Look Period

Utah provides a free look period for life insurance:

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

Incontestability Clause

Utah 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
• If policy is reinstated, a new contestability period may apply
• Protects beneficiaries from denied claims due to application errors

Suicide Clause

Utah has specific suicide exclusion rules:

• Standard suicide exclusion is 2 years from policy issue
• Some policies may have 1-year suicide exclusion
• After the exclusion period, death by suicide is covered
• If policy is reinstated, new period may apply

Grace Period Requirements

Utah mandates grace periods for premium payments:

During the grace period:

• Policy remains in full force
• Death benefits are payable (minus unpaid premium)
• Policy lapses at end of grace period if premium not paid

Beneficiary Protections

Utah has specific beneficiary protection laws:

Creditor Protection

Under Utah law:

• Life insurance proceeds payable to a named beneficiary may be protected from the insured's creditors
• Utah provides strong creditor exemptions for life insurance
• Proceeds payable to the estate are subject to creditor claims

Beneficiary Designation

• Policyowner has the right to change beneficiary unless irrevocably designated
• Changes must be made in writing
• Change is effective when received by the insurer

Required Policy Provisions

Under Utah law, life insurance policies must include: