Massachusetts Health & Accident Insurance Practice Exam

How many days are typically given under the Free-Look Provision to review a policy?

1. 5 days

2. 10 days

3. 15 days

4. 30 days

The correct answer is: 10 days

The Free-Look Provision is a critical feature in health and accident insurance policies that allows policyholders to review their policy after purchase. Typically, the policyholder has a specified number of days, in this case, the commonly accepted standard is 10 days, to assess the terms and conditions of the policy. During this period, individuals have the opportunity to read through the policy details, evaluate if the coverage meets their needs, and make an informed decision about whether to keep the policy or cancel it. If they choose to cancel within this timeframe, they can receive a full refund of any premiums paid. This provision helps protect consumers by ensuring they are satisfied with their purchase and understand what they are buying. In contrast, shorter periods like 5 days might not provide enough time for a thorough review, and longer periods such as 30 days may not align with standard industry practices for most states, including Massachusetts. Thus, the 10-day timeframe is a commonly accepted duration that reflects a balance of consumer protection and operational efficiency for insurers.