Question

What is the purpose of a free-look period in insurance policies?

O A. It allows the insurer to cancel coverage if a misrepresentation is discovered.
O
B. It allows the insurer to temporarily suspend coverage after an insured's disability.
O
C. It allows the insured to reject the policy with a full refund.
D. It allows the insured 10 days to pay the initial premium.

Answer 1

The purpose of a free-look period in insurance policies is to allow the insured to reject the policy with a full refund.

Step-by-step explanation:

The purpose of a free-look period in insurance policies is to allow the insured to reject the policy with a full refund. During this period, which is typically a few days after the policy is issued, the insured can review the policy terms and conditions, and if they are not satisfied, they can cancel the policy without any penalty and receive a full refund of any premiums paid.

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