The insurer has the right to deduct the unpaid premium from the claim payment.

Message Author
ampm-bookmark
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Mon Nov 17, 2008 1:26 am   Post subject:   

Quote:
I believe in a true 'grace period' a claim could result, the premium must be accepted...in the other, the premium does not have to be accepted, (the ten or 15 day deal)...




Absolutely correct. With car and home policies, the insurer would have to actually accept the premium (the agent counts as the company here, too) in order for the coverage to be reinstated. Most carriers will also have the insured sign a statement that no losses have occured during the lapse period, an "LPR" statement.



In life and health insurance, they are true "grace periods" that differ from the "late payment" period commonly afforded car and home insurance. In life and health, the premium must be accepted and coverage continued without interruption if the premium is paid within the statutory grace period. Claims that occur during the grace period are covered, period. The insurer has the right to deduct the unpaid premium from the claim payment.



InsTeacher Cool
InsTeacher
Forum Expert
Leave a quick message

InsTeacher
Forum Expert

Joined: 13 Aug 2007
Posts: 1398

Location: Oregon, USA
127.26 Dollars($)

Quick Reply
Your Name
Subject
Message body
All times are GMT
 Previous  1, 2
Page 2 of 2


Get a Quote
Ask Community Experts

flash plugin

Quick Links

Must See

Community

Hot topics in forums

Latest in blogs

    Connection Error: Connection refused