State RegulationsNY specificDifficulty 2/5
A consumer in Rochester buys a life insurance policy through a direct-response mail solicitation, with no agent involved. Under N.Y. Ins. Law §3203(a)(11), for how long after receiving the policy may the consumer return it for a full refund of premium?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §3203(a)(11), an ordinary life policy must give the owner a return-for-full-refund right of at least 10 days and no more than 30 days after receipt, and §3209(d)(7) independently guarantees an unconditional premium refund for at least 10 days after receipt. Because this policy was sold by direct response through the mail, the consumer is entitled to the full 30-day window - a mail-order policy may not provide less - which compensates for the absence of any face-to-face explanation by an agent at the point of sale.
Why the other options are wrong
- A) Ten days is the statutory minimum for ordinary policies; a direct-response mail-order policy carries the full 30-day return window.
- B) Thirty-one days is the life insurance grace period figure, not the free-look period; grace and free look are different policy provisions.
- D) Sixty days is the unconditional refund right that Reg 60 provides in a replacement, not the direct-response mail-order free look.
Memory hook
Mail order gets the maximum: 30 days to look, while 10 days is everyone's floor.