California Life-Only & Accident and Health AgentAccident and Health InsuranceEasy
Which of the following describes the 'free-look' provision in a health insurance policy?
- AIt provides a grace period for premium payments before the policy lapses.
- BIt allows the insured to change their primary care physician at any time without penalty.
- CIt permits the insured to return the policy for a full refund within a specified number of days after delivery.
- DIt guarantees the insured's right to renew the policy without evidence of insurability.
Show answer & explanationAnswer & explanation
Correct answer: C. It permits the insured to return the policy for a full refund within a specified number of days after delivery.
The 'free-look' provision, also known as the Right to Examine Provision, gives the policyowner a specified period (typically 10 days, but can be more for certain policies) after policy delivery to review the policy and return it for a full refund if not satisfied.
Why the other options are wrong
- A. This describes a grace period, which relates to premium payment deadlines.
- B. This relates to provider network flexibility, not the free-look period.
- D. This describes a guaranteed renewable provision, not the free-look provision.
Free-Look Provision
A policy provision that grants the policyowner a specified period (e.g., 10 or 30 days) after receiving the policy to review it and return it for a full refund if not satisfied.
- Starts upon policy delivery.
- Allows for a full refund of premiums paid.
- Mandated by state law to protect consumers.
Memory trick: Policy provisions offer rights: free-look for review, grace for payment, renew for continuation.