Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Specific to Life InsuranceEasy
A Texas resident purchases a new individual life insurance policy. How long does the policyholder have to return the policy for a full refund of premiums paid if they are not satisfied with its terms?
- A20 days from the date of policy delivery
- B10 days from the date of policy delivery
- C15 days from the date of policy delivery
- D30 days from the date of policy delivery
Show answer & explanationAnswer & explanation
Correct answer: D. 30 days from the date of policy delivery
In Texas, individual life insurance policies are required to include a free-look provision, allowing the policyholder 30 days from the date of delivery to return the policy for a full refund without penalty.
Why the other options are wrong
- A. This is incorrect; while some policies might have a 20-day period, the minimum for individual life insurance in Texas is 30 days.
- B. This is incorrect; the standard free-look period for individual life insurance in Texas is longer.
- C. This is incorrect; the standard free-look period for individual life insurance in Texas is 30 days.
Free-Look Provision (Individual Life - Texas)
A mandatory provision in Texas individual life insurance policies allowing the policyholder to return the policy for a full refund within a specified period after delivery.
- Applies to individual life insurance policies.
- Minimum 30-day period in Texas.
- Starts from the date of policy delivery.
- Full refund of premiums paid.
Memory trick: Thirty days to decide, or send it back, no pride.