State RegulationsNC specificDifficulty 1/5
Before issuing an individual life insurance policy in North Carolina, what must appear on the face of the policy to satisfy the free-look regulation?
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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. It gives the policyholder, after receipt of the policy, the right to return it for a prompt refund of the premium paid.
Why the other options are wrong
- A) The guaranty association summary must be delivered before or at policy delivery, but it is not the face-of-policy free-look requirement.
- B) No rule requires an appointment number to appear on the face of the policy.
- D) The standard provisions are part of the contract, but the regulation specifically requires the free-look notice on the face of the policy.
Memory hook
Sticker on the face says: ten days to change your mind.