Question

Which of the following statements is true about an insured who wishes to cancel her insurance policy

A) The insured can cancel the policy at any time and receive a full refund of all premiums paid.
B) The insured can cancel the policy at any time but may be subject to a penalty or fees.
C) The insured cannot cancel the policy until the policy term expires.
D) The insured can cancel the policy within a specific "free look" period and receive a full refund of premiums paid.

Answer 1

The insured can cancel the policy within a specific "free look" period and receive a full refund of premiums paid.

Step-by-step explanation:

The correct answer is D) The insured can cancel the policy within a specific "free look" period and receive a full refund of premiums paid. In most insurance policies, there is a period of time called the "free look" period during which the insured can cancel the policy without any penalties and receive a full refund of the premiums paid. This period usually lasts between 10 and 30 days, depending on the insurance company and the type of insurance policy.

For example, if the insured purchases an auto insurance policy and then decides that she no longer wants the policy within the "free look" period, she can cancel the policy and receive a full refund of the premiums she has paid. After the "free look" period expires, the insured may still be able to cancel the policy, but she may be subject to penalties or fees.