1.Can an ex-spouse collect life insurance?
Although varying state by state, divorce decrees can automatically cancel the designation of the spouse as the named beneficiary of any life insurance coverage, even if the policyholder made no specific try to achieve this. In these states, after acquiring a separation and divorce, the policyholder will have to either file a new named beneficiary designation or mention in the decree itself he intends his former husband or wife to remain a beneficiary. Otherwise, the insurance will be paid to whoever else is a named beneficiary or to the deceased’s estate.
2.What is life insurance?
Life insurance policy is basically a contract with an insurance company, just like any other form of insurance. In exchange for premium payments, the insurance company provides a payment, known as a death benefit, to beneficiaries upon the insured’s death. Life insurance is usually chosen based on the needs of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It is important to note that death benefits from all types of life insurance are generally income tax-free.
3.What is bad faith?
Bad faith is the deceitful deception of another person or maybe the intentional or malicious refusal to perform some duty or contractual responsibility. Bad faith is not the same as earlier judgment or negligence. One can make an honest blunder about one’s own privileges and duties, but when the rights of somebody else are intentionally or maliciously infringed upon, such conduct demonstrates bad faith.
4.How long does an insurance claim take?
An insurance company is supposed to pay claims within a reasonable amount of time. Generally, this should not be more than about six to ten weeks. Whether they have not paid you during this time period frame, then they may be performing in bad faith.
5.What are punitive damages?
Besides awarding a plaintiff genuine damages and damages for emotional distress and/or injuries, the court may examine punitive damages against an insurance company to function as a punishment and deter the company from behaving in bad faith again. For this to take place, it must be proven that the insurer acted with pleasanter, fraud or oppression.
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