An insurance company is entitled to a reasonable period of time to review an application for insurance and determine whether it wants to issue the requested policy. If the claimant dies before the expiry of this reconsideration period, the insurance company is generally not responsible for the estate of the applicant or intended beneficiary. However, assuming that the applicant meets the requirements of the application, the insurance company is required to review the application for insurance without delay. When the policy is converted from group life insurance to individual life insurance (i.e., after termination or after the insured has lost his or her status as an eligible member of group life insurance) and the applicant completes the application for individual insurance and issues the first premium within 31 days of termination, the policy is still in effect if the insured dies within the 31-day period. Under this provision, the beneficiary is entitled to benefits due under the individual insurance scheme, even if the entitlement is actually payable under the group policy. This applies regardless of whether the application has been completed or the premiums have been paid. In addition, the claimant (i.e., the intended beneficiary or the claimant`s estate) must prove that the insurable claimant would have filed a claim with another insurance company during the delay and would have been insured by another insurer. Thus, even if an agent or insurer acts inappropriately in informing the claimant of the denial of insurance coverage, there is no liability if the claimant or its beneficiaries cannot provide evidence that the claimant has applied elsewhere or that another insurance company has issued a life insurance policy. If the claimant does not comply with the requirements of the insurer`s policy (p. ex.
B a medical examination), the insurer will not be liable to the policyholder, even if the policy has been approved or rejected outside the normal time limits. If the insurer does not adequately process the application for insurance, the insurer may be prevented from denying the existence of a life insurance policy if the insurer`s negligence led the plaintiff to believe that he was indeed insured. In general, the claimant must prove a positive act of the insurer that prevented him or her from taking out insurance with another insurer and, therefore, harmed the claimant (i.e., the insurer`s negligence was the direct cause of the loss of the claimant`s insurance benefits that would have been obtained without the insurer`s negligence). This claim is based on the idea that the insurer`s negligence in issuing the policy resulted in the insured losing the right to the proceeds of the policy. If an applicant completes an application for a life insurance policy, pays the insurance premium, and is ultimately approved for the requested policy, the insurance company may issue a conditional receipt that provides insurance coverage to the applicant during the time the application is reviewed. In particular, a conditional receipt may limit the amount of coverage and the duration of the conditional policy provision to the applicant. .