State RegulationsNC specificDifficulty 1/5
A standard individual life policy is delivered in North Carolina. Under the Ten Day Free Look provision, the policyholder may return the policy for a prompt refund of premium within how many days after receipt?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under 11 NCAC 12 .0447, every individual life or annuity policy must display the Ten Day Free Look provision by sticker or print on the face of the policy before issuance, giving the policyholder the right to return the policy after receipt for a prompt refund of the premium paid. The standard free look in North Carolina is 10 days; only replacement transactions carry the longer right.
Why the other options are wrong
- A is wrong because the 30-day return right applies only in replacement transactions under 11 NCAC 12 .0612(a)(4), not to a standard policy sale.
- C is wrong because no 15-day free look exists in the North Carolina rule.
- D is wrong because 45 days is not a free-look figure; it appears only in the notice-before-forfeiture timing rules.
Memory hook
Standard free look: ten days on the face of the policy; thirty is for replacements.