Question

Which of the following provisions commence at the time of the delivery of the policy to the insured

A.10-day Free Look Period
B. In-Force Period
C. Crace Period
D. Delivery Period

Answer 1

B. 10 Day Free Look Period

Step-by-step explanation:

Once an insurance policy is delivered to the insured, the insured is granted a further period of 10 days during which he gets a second chance to review the insurance policy terms and conditions in detail and decide whether he would like to continue or terminate his policy.

Free look period allows the insured to terminate the insurance policy within the stipulated time of 10 days without incurring penalties such as surrender charges.

Free look periods are usually associated with life insurance policies.

Once a policyholder is in receipt of new insurance policy, the free look period begins.