Q. Why should I
purchase disability insurance now?
A. As with most types of insurance, the older you get the more expensive the
coverage will become. Statistically you may be more likely to become disabled,
as you get older. It is not guaranteed that you can be insured and as you
increase in age; this will affect your ability to acquire a policy. Most
importantly an accident or debilitating illness could strike at any time.
Q. When I apply for insurance, what
kind of information is collected?
A. Your insurance company or agent will require that you disclose certain
personal information to determine your eligibility for insurance coverage and
establish the price of coverage. In addition, companies may also obtain
information from independent sources.
Q. What are independent sources?
A. Independent sources may include your prior insurance company and/or
consumer reporting agencies or inspection services. These organizations may
contact you, your family members, neighbors, or employer.
Q. Do I have the right to know if the
company has prepared an investigate consumer
report about me?
A. The insurance company must inform you if a consumer information report is
ordered. You also have the right to receive a copy of the completed report. You
may write to the company providing them with proper identification (your name,
address, and policy number) and state what information you must provide this
information within 30 days. The company will also identify to whom the
information has been disclosed during the preceding two years.
Q. What can I do if I disagree with the
information contained in an investigative
consumer report?
A. You may request, in writing, a correction, an amendment or a deletion of
any recorded information about you in the company's possession. The company will
review the file and make the necessary corrections. However, if the company
disagrees with you, they must inform you of the reason. If you are not satisfied
with their explanation, you have a right to file a statement setting forth what
you think is correct and why you disagree with the company s information. Your
supplementary statement's will be placed with your file, and anyone reviewing
the disputed information will be made aware of the statement's.
Q. Who has access to information about
me?
A. The information collected is
kept by the company. it can be used in connection with issuing, servicing and
continuing insurance policies, and processing claims. With your prior
authorization certain persons or organizations may obtain your information, they
are:
- Persons performing a business function
for the company, e.g. auditors.
- Your agent or broker.
- Insurance investigators and support
organizations, other insurance companies with respect to an insurance
transaction involving you.
- Independent claims adjusters.
- Actuarial or research organizations
conducting statistical or research studies; however, they must agree not to
identify any individual in the report.
- Other companies with which your
company is affiliated.
Finally, it may be given to persons or
organizations for marketing purposes. However, you may indicate in writing if
you do not want the information to be disclosed for such purposes. You may do
this when you apply for coverage's.
Q. Can an insurance company cancel my
policy?
A. Generally, a company is
required to offer to renew your policy contingent upon premium payment. However,
if the company is not renewing your policy, it must mail or deliver a notice of
non-renewal to you at your last known address, at least 20 days before the end
of the policy period (see glossary of terms) date. The non-renewal notice will
state that, upon your written request, the company will give you the reason for
non-renewal. You must make your request not later than one month following the
expiration of the policy period.
Q. How long do plans pay a benefit?
A. There are many different plans with different options on this. The best plan
would be one that will replace the lost income until you are 65 years of age.
Any other will not meet the demands of your financial obligations.
Q. Do I have to pay any penalty if I
cancel my insurance in the middle of the term?
A. Generally, if the
policyholder prematurely initiates a cancellation, the premium would be
calculated on a short-rate basis whereby part of the unearned premium is being
retained by the company to cover administrative expenses. However, some
companies may calculate the premium on a pro-rata basis. Read your policy
contract to find out the cancellation provisions of the company.
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