Posts Tagged ‘life insurance in Tennessee’

Insurance companies employ agents / producers to go out into the field and solicit life insurance policies.  These agents are required by the insurer and Tennessee law to comply with all procedures when completing an application.  These steps must be taken correctly or there can be consequences to their actions.

Each agent must provide correct information about the life insurance policy that they are selling to their client.  There must not be any misrepresentation or false information provided.

When an agent receives an application, he /she will go over and make sure it is completely filled out correctly and to the best of the applicants knowledge.  If the agent suspects any misrepresentation in the application, they should probe the applicant with questions regarding their concerns.  An agent represents the insurer, therefore, if he / she feels that there could be misrepresentation, they must inform the insurance company with their concerns.

There are a certain responsibilities that come with being an insurance agent.  Some of these responsibilities include:

  • Preventing adverse selection of applicants
  • Using proper solicitation techniques
  • Completing the entire application
  • Obtaining all required signatures
  • The collection of the initial premium and issuing receipt
  • Delivering the policy to the client
When completing the application for the resident in Tennessee, the insurer requires the signature of the agent and proposed insured.
Any changes in the life insurance application cannot be “whited out”.  If there is a mistake, a new application must be filled out or the mistake must be crossed out and initialed by the applicant.
Any questions not completely answered on the application will be returned.
For more information about Life Insurance In Tennessee, visit our website.
Advertisements

Many life insurance policy provisions are straight forward and uniform anywhere in the country.  Although, with each state, there comes different laws and ways of enforcing them.  Here’s a list of provisions that must be included with every life insurance policy issued in the state:

  • All premiums except for the first payment, should be made one month in advance to the insuring companies home office or insurance agent.
  • A grace period of one month will be allowed after the first year of paying premiums, but may be subjected to an interest charge.
  • In the absence of fraud, all statements made by the insurance company are deemed to be representations and not warranties.
  • If there is a circumstance where the age is understated, the insurance death benefit will be adjusted to the correct insureds age and the policy will be paid out.
  • In participating policies, the companies dividend surplus must be divided no later than the third year of the policy.  The insured also has the option to choose between a reduction of premium payment, purchase paid-up insurance or paid cash with their share of the dividends.
  • Each policy must show a table of loan values and options for the first 20 years of the policy.
  • There also must be a table to show the installment of premium payments.
  • When there is a death benefit claim, the insurer must pay the benefit within two months after the receipt of proof of death.
These provisions are steady and constant with other states laws and provisions.  If you are interested in buying life insurance in Tennessee or have any other insurance needs in Nashville, visit our website.