State RegulationsNC specificDifficulty 1/5
Under 11 NCAC 12 .0447, what must appear on the face of every individual life or annuity policy before issuance to inform the policyholder of the return right?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under 11 NCAC 12 .0447, every individual life or annuity policy issued in North Carolina must display a 'Ten Day Free Look' provision by sticker or print on the face of the policy before issuance. It gives the policyholder, following receipt of the policy, the right to return it for a prompt refund of the premium paid. The standard free look is ten days; the thirty-day return right exists only in replacement transactions.
Why the other options are wrong
- B) Thirty days is the replacement-transaction return right under 11 NCAC 12 .0612(a)(4), not the standard free look.
- C) No health-history condition attaches to the free-look return right.
- D) The rule exists precisely so the policyholder may return the policy after paying the initial premium.
Memory hook
Ten days on the face — life and annuity policies must show it.