Key Takeaways
- DC requires a 10-day free look period for standard life insurance policies
- Life insurance policies must include a 2-year incontestability clause under DC law
- Suicide exclusion in DC is limited to 2 years from policy issue date
- DC requires a 31-day grace period for premium payments
- The Department of Insurance, Securities and Banking (DISB) regulates all life insurance
District of Columbia Life Insurance Policy Requirements
The District of Columbia regulates life insurance through DISB (Department of Insurance, Securities and Banking). These requirements protect consumers in the nation's capital.
Free Look Period
DC 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: DC uses the standard 10-day free look period. Long-term care insurance has an extended 30-day free look.
Incontestability Clause
DC 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
DC 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
Standard Policy Provisions
DC 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
Nonforfeiture Options
DC 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 |
How long is the free look period for a standard life insurance policy in Washington DC?
What agency regulates insurance in Washington DC?
What is the minimum grace period for life insurance premium payments in DC?