State RegulationsPA specificDifficulty 2/5
Why does Pennsylvania require a right-to-examine (free look) provision in individual accident and health policies under 40 P.S. § 752(A)(10)?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Pennsylvania's right-to-examine requirement, 40 P.S. § 752(A)(10) with 31 Pa. Code 89.73, is a consumer protection that runs in the applicant's favor: it gives the buyer a defined period to study the delivered policy — its exclusions, limitations, and benefits — and to walk away with a full premium refund if it does not fit. The benefit of doubt during the examination period belongs to the applicant, not the insurer or the producer.
Why the other options are wrong
- A) The free look is the applicant's right to reconsider, not a rescission window for the insurer's underwriting second thoughts.
- C) Producer commissions are unaffected; the provision protects the policyholder's review rights, not the agent's compensation.
- D) Coverage begins under the issued policy during the examination period; the free look does not postpone the effective date.
Memory hook
The free look belongs to the buyer — read, reflect, return.