Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Specific to Life InsuranceEasy
An agent is discussing a new whole life insurance policy with a client in Texas. The client asks about the 'free-look' provision. What is the minimum free-look period that must be provided for a new individual life insurance policy in Texas?
- A10 days
- B31 days
- C5 days
- D20 days
Show answer & explanationAnswer & explanation
Correct answer: A. 10 days
In Texas, a new individual life insurance policy must include a free-look period of at least 10 days, allowing the policyowner to return the policy for a full refund of premiums paid.
Why the other options are wrong
- B. 31 days is typically associated with the grace period for premium payments, not the free-look period.
- C. 5 days is too short for the standard free-look period in Texas.
- D. While some policies or specific situations might offer longer periods, 20 days is not the minimum requirement.
Free-Look Provision (Texas Life Insurance)
A mandatory provision in Texas individual life insurance policies that allows the policyowner a specified period (at least 10 days) to review the policy and return it for a full refund of premiums if not satisfied.
- Mandated by Texas insurance law.
- Minimum 10 days for individual life policies.
- Starts upon policy delivery.
- Full refund of premiums if returned.
Memory trick: Free-look: Ten days to read, or your money's freed.