Question

What does the free look cancellation option in insurance policies allow?

a.

Conversion of lump sum to annuity

b.

Backdating of the policy

c.

Changing the ownership of the policy

d.

Cancellation of the policy within a specified period if the policyholder is not satisfied

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).Cancellation of the policy within a specified period if the policyholder is not satisfied Explanation:The free look cancellation option allows policyholders to cancel the policy within a specified period, typically 15 days, if they are not satisfied with the policy terms, with specified charges deducted.

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Q. What does the free look cancellation option in insurance policies allow?
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