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Insurance · Policy Provisions and Riders

What does the 'free look' provision give a new life insurance policyowner?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

A specified period (commonly 10 days or more, varying by state) after receiving the policy during which they can review it and return it for a full refund of premium

  1. A A specified period (commonly 10 days or more, varying by state) after receiving the policy during which they can review it and return it for a full refund of premium
  2. B Free coverage for life
  3. C A free additional policy
  4. D The right to change beneficiaries only

Why this is the answer

The free look provision gives a new policyowner a specified period — commonly 10 days, though the exact length varies by state — after receiving the policy to examine it and, if not satisfied, return it for a full refund of premiums paid. This consumer-protection feature lets the buyer reconsider after seeing the actual policy terms. The free-look period typically begins when the policyowner receives the policy. Because the exact number of days is set by each state's law, exam answers often hedge with 'commonly 10 days.' Knowing the purpose of the free-look provision — a no-penalty review-and-return window — is standard policy-provisions content.
Source: NAIC Model Outline, Free Look

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About this topic: Policy Provisions and Riders

Policy provisions and riders cover the standard clauses — incontestability, grace period, reinstatement, misstatement of age, nonforfeiture options, settlement options — and the common riders such as waiver of premium and accidental death. This is one of 17 Life Insurance questions on policy provisions and riders, each with a full explanation on a single study page.

New to this exam? Our Insurance exam guide explains the format, scoring, and how to prepare.

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