Which of the following is true about the 10 day free-look period?
Asked by: Prof. Cordell Gleichner | Last update: February 11, 2022Score: 4.6/5 (64 votes)
Which of the following is TRUE about the 10-day free-look period in a Life Insurance policy? ... The policy will terminate when the cash value is reduced to nothing. The paid-up addition option uses the dividend. To purchase a smaller amount of the same type of insurance as the original policy.
Which of the following is true about the free look period in a life insurance policy?
Which of the following is true about the mandatory free look in a Life Insurance policy? It commences when the policy is delivered. ... The policy will terminate when the cash value is reduced to nothing: with the automatic premium loan option, the premium is automatically paid from the contract's guaranteed cash value.
Which of the following applies to the 10-day free look?
which of the following applies to the 10-day free-look privilege? it permits the insured to return the policy for a full refund of premiums paid.
What is the free look period?
Variable annuity contracts typically have a "free look" period of ten or more days. During this period, you are free to terminate your contract without paying any surrender charges and you will receive a refund for the amount you paid.
What happens if a policyowner exercises the free look?
A policyowner exercise his/her free look by delivering or mailing the policy during the free look period, by voiding the policy from the beginning, the parties will be in the same position as if no policy had been issued.
Here's the answers to the EXAM!!
What is the purpose of a free look period in insurance policies quizlet?
The free look provision is a mandatory provision that allows the insured to examine a policy, and if dissatisfied for any reason, return the policy for a full refund of any premiums paid.
What is the return policy for free look period?
Call up the insurer's customer care to communicate your decision to cancel the policy. You should visit the insurer's office to submit your policy cancellation application. Many insurers put up cancellation forms on their websites, which can be downloaded.
What is the purpose of a free look period of at least 10 days?
A free look period often lasts 10 or more days depending on the insurer. During the free look period, the contract holder can decide whether or not to keep the insurance policy; if they are not satisfied and wish to cancel, the policy purchaser can receive a full refund.
What is the free look period for all states?
Every state insurance department mandates a free look provision of at least 10 days in life insurance contracts, though many require an even longer period. Additionally, your contract may include a free look provision longer than the minimum requirement.
How long is the typical free look period for long term care insurance policy?
Free-Look Period - The first 30 days after you receive a new policy. During this period you can cancel for any reason and receive a full refund. Guaranteed Renewable - You have the right to renew your LTC policy for life, as long as you pay the premiums.
Which of the following is true regarding a policy with a face value less than $10 000?
Which of the following is true regarding a policy with a face value less than $10,000? It it's returned during the free look period, the agreement will be void. Every policy of individual life insurance must include a notice of right to cancel the policy, stating the specific time frame for the free-look period.
What is a characteristic of a 501 C )( 9 Trust quizlet?
All of the above are characteristics of a 501(c)(9) plan. Some small employers do not have enough employees to form a group large enough to qualify for group insurance. These employers may join with other employers in the same or similar industry and form a trust to provide health coverages.
What is grace period in insurance?
In case you are unable to pay insurance premium timely, all insurance companies give you a second chance to pay it in the form of an insurance grace period. To put it simply, an insurance grace period is the specific additional time you get after the due date to pay the premium and avoid a policy lapse.
How long is the free look period for long term care policies issued in Georgia?
How long is the typical free look period for Long Term care insurance policies? 30 days . (Most Long Term Care policies require a 30-day free look period.
How long is the free look period for life insurance in California?
In California, you have a 10 day free look period to cancel the policy never effective. Use this time to review the policy and your insurance needs.
How long is the free look period for accident and health policies sold in North Carolina?
“Free look” is the period of time following policy delivery in which the applicant can return the policy for a full refund of premium. This period is a minimum 10-day “free look” period on new policies and a minimum 20 day “free look” period on replacement policies.
What is the free look period in Florida?
Free Look Period: An unconditional refund for a period of at least 14 days once the life insurance contract is delivered.
What is lock in period and free look period?
Stipulated period
The law allows the policyholder 15 days as free-look period from the date of receipt of the policy document. Policyholder is allowed to cancel the policy during this period and get a refund.
What is the purpose of a free look period of at least 10 days the buyers guide may be delivered to the applicant no later than?
If a life insurance policy contains a free-look period of 10 days, the buyer's guide can be delivered with the policy. If it doesn't the buyer's guide must be delivered prior to accepting the initial premium.
Which of the following is true about Nonforfeiture values?
Terms in this set (125) Which of the following is TRUE about nonforfeiture values? ... Nonforfeiture values are required by state law to be included in the policy, and cannot be altered by the policyowner. A table showing the nonforfeiture values for the next 20 years must be included in the policy.
Which of the following is true regarding the annuity period?
It is the period of time during which the annuitant makes premium payments into the annuity. Answer: A. It may last for the lifetime of the annuitant. An annuity is basically a plan which a person buy by making a lumpsum payment to a insurance company generally to get regular payment for life.
What is free look period in HDFC Life insurance?
Policyholders can avail the free look period of either 15 days or 30 days within, which they can request for some alterations in the policy or cancellation of the policy. This period begins from the date on which you had received your policy documents.
What is the minimum period of life insurance class 11?
If repayment of loan is desired within this period the interest for the minimum period of six months will have to be paid. In case the policy becomes a claim either by maturity or death within six months from the date of loan interest will be charged only upto the date of maturity/death.
Does car insurance have free look period?
The free look period is usually 14 days, but it may also differ from one insurer to the other. In case, you decide to cancel the policy after the completion of this period, the insurance company will deduct a percentage of the car insurance premium, depending on the terms specified.
Which of the following is true regarding elimination periods?
Which of the following is true regarding elimination periods and cost of coverage? The longer the elimination period, the lower the cost of coverage. - the elimination period is a period of days which must expire after onset of an illness or occurrence of an accident before benefits will be payable.