Final answer:
In the state of New York, the correct answer is that the insured may cancel a health insurance policy and receive a full refund within 10 days of purchase.
Step-by-step explanation:
When a health insurance policy is purchased in the state of New York, the insured has the right to cancel the policy and receive a premium refund within 10 days. This period is known as a "free-look" period and is mandated by insurance regulations to allow consumers to review the terms of their policies without financial penalty. The laws governing health insurance policies, such as the provisions under the Affordable Care Act, aim to both increase accessibility to insurance and protect consumers from existing tactics that may restrict their options or impose undue financial burdens by mandating certain conditions like coverage of preexisting conditions and allowing children to remain on their parents' insurance until the age of 26.