An adult applicant who is not yet of retirement age buys an individual life insurance policy in New Jersey. Under the free-look requirement administered by the New Jersey Department of Banking and Insurance, how long does she have to examine the delivered policy and return it for a refund of premium?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
New Jersey gives individual life insurance purchasers a free-look window of 10 days from policy delivery to examine the contract and return it for a refund of premium if they choose not to keep it. The right lets buyers review the actual contract terms without financial risk, and the New Jersey Department of Banking and Insurance enforces the return-and-refund protection across the individual market. The standard window applies to this 45-year-old applicant; different, longer examination periods apply to distinct product categories such as Medicare supplement coverage sold to seniors.
Why the other options are wrong
- B) 7 days matches weekly-mode grace concepts in health coverage, not the individual life free-look period.
- C) 20 days is not the standard free-look window for a 45-year-old life policy buyer in New Jersey.
- D) 30 days belongs to other examination periods, such as Medicare supplement and direct-response coverage, not to a standard individual life sale.
Memory hook
Ten days to read, ten days to return: the life free look is a dime-short dozen.