State RegulationsIL specificDifficulty 1/5
After delivery of a newly issued individual life insurance policy in Illinois, how many days does the policyowner have to return the policy for a full refund under the Insurance Code's free-look provision?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
215 ILCS 5/224(1)(n) requires newly issued individual life policies to carry a 10-day free look: the policy must contain a prominent front-page notice, and the owner who returns the policy within the period receives a full refund of premiums. The free look is especially significant in replacement sales, where the owner is giving up an in-force policy and the window is the final chance to reconsider after reading the new contract.
Why the other options are wrong
- B) 20 days is not the statutory free-look period for newly issued individual life policies; 10 days is the keyed figure under 215 ILCS 5/224(1)(n).
- C) 30 days is the free-look period for Medicare supplement policies in Illinois under 215 ILCS 5/363, a different product with a longer window.
- D) 45 days is the annual birthday open-enrollment window for Medicare supplement policyholders between ages 65 and 75, not a life insurance free look.
Memory hook
Life looks free for ten; Medicare supplement takes thirty; the birthday window runs forty-five.