Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsMedium
A Florida 2-20 General Lines Agent is reviewing the Florida Statutes with a new employee. They are discussing the 'cooling-off' period for certain insurance policies. For which type of policy is a 14-day 'free look' period typically required by Florida law, allowing the insured to return the policy for a full refund?
- APersonal Auto Policy
- BLife Insurance Policy
- CWorkers' Compensation Policy
- DCommercial Property Policy
Show answer & explanationAnswer & explanation
Correct answer: B. Life Insurance Policy
Florida law (specifically Florida Statute 627.476 for life insurance and 627.607 for health insurance) requires a 'free look' period for certain types of individual insurance policies, most notably life insurance and individual health insurance. This period, typically 10 or 14 days, allows the policyholder to review the policy and return it for a full refund if dissatisfied.
Why the other options are wrong
- A. Personal Auto policies do not have a statutory free-look period in Florida.
- C. Workers' Compensation policies are mandatory and do not include a free-look period for the employer.
- D. Commercial Property policies typically do not have a statutory free-look period in Florida.
Florida 'Free Look' Period
A 'free look' period, mandated by Florida law for certain individual insurance policies, allows the policyholder to return the policy within a specified number of days for a full refund if not satisfied.
- Typically 10 or 14 days.
- Applies to individual life and health insurance policies.
- Allows for full premium refund upon policy return.
- Ensures consumer satisfaction and understanding of complex policies.
Memory trick: Look free at life and health, but not auto or property.