CARD Q042
An owner receives a newly issued policy and wants to return it for a refund within the permitted review window. Which provision applies?
- Free-look period
- Elimination period
- Grace period
- Contestability period
Free-look period
Free look concerns review after delivery. A grace period allows extra time for a renewal premium while coverage continues under its terms.
Why each choice is right or wrong
A. Free-look period
Correct. Free look concerns review after delivery. A grace period allows extra time for a renewal premium while coverage continues under its terms.
B. Elimination period
Incorrect. An elimination period delays benefit eligibility after a covered event.
C. Grace period
Incorrect. A grace period allows time for an overdue renewal premium.
D. Contestability period
Incorrect. Contestability concerns the insurer’s ability to challenge coverage, not the owner’s return-for-refund window.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.