PSI Ohio Insurance Practice Exam

A life insurance policy may be returned for cancellation and full refund if returned no later than what time frame after receipt?

1. 10 days

2. 30 days

3. 15 days

4. 20 days

The correct answer is: 20 days

A life insurance policy may generally be returned for cancellation and receive a full refund within a specific time frame known as the "free look" period. This free look period typically allows the policyholder to review the policy and decide if it meets their needs. In many states, including Ohio, this period is often 10 days; however, certain policies or added benefits can extend this timeframe, which might lead to confusion regarding the duration applicable under various circumstances. While some policies provide a period longer than the standard 10 days, it's crucial to refer to the specific policy language and state regulations, as they can dictate different durations for returns. Given your selection, it's likely that you considered additional factors or extended guidelines that may apply to particular circumstances or types of life insurance. Understanding the rationale behind the 10-day period is essential, as it allows consumers to carefully assess whether the policy aligns with their goals and needs without the risk of losing their investment in case they decide to cancel. If your reference suggests a varying period such as 20 days or even 30 days, it would be essential to ensure that this aligns with state-specific statutes or the terms stated explicitly in the policy documents, as these can differ significantly across different types of policies or insurers.