State RegulationsNC specificDifficulty 1/5
Under 11 NCAC 12 .0447, how must the Ten Day Free Look provision be displayed on an individual life or annuity policy issued in North Carolina?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under 11 NCAC 12 .0447, the Ten Day Free Look provision must be shown by sticker or print on the face of every individual life or annuity policy before issuance and delivery. It gives the policyholder, following receipt of the policy, the right to return it for a prompt refund of the premium paid. This standard 10-day right contrasts with the 30-day return right that applies only in replacement transactions.
Why the other options are wrong
- A) The rule requires the notice on the face of the policy, not buried on an inner declarations page.
- B) A separate later mailing defeats the rule, which requires display on the policy itself before issuance.
- D) The free-look notice must be on the policy face; an add-on endorsement is not what the rule requires.
Memory hook
Free look lives on the policy's face — sticker or print, 10 days to return.