Can I get clarification on when the Free Look provision is applied? I'm trying to determine when the clock starts ticking to apply the 14 day review. What is the definition of policy delivery? When the insurer hands off to the agent? Or, when the agent hands of physically to the policyowner?
Free Look - An insurance company is required to provide to each prospective policy purchaser, including fixed annuities, a "Buyer's Guide" and a policy summary which contains an offer of a full and unconditional refund within 14 days of policy delivery.
In the study manual, I found this verbiage related to policy delivery in the Life Insurance section. Does it apply to health?
"From a legal standpoint, policy delivery may be accomplished without physically delivering the policy into the policyowner's possession. Constructive delivery, which satisfies the legal interpretation, is accomplished technically if the insurance company intentionally relinquishes all control over the policy and turns it over to someone acting for the policyowner, including the company's own agent. Mailing the policy to the agent for unconditional delivery to the policyowner also constitutes constructive delivery, even if the agent never personally delivers the policy."
In the Health exam, I interpreted that policy delivery occurred when the insurer relinquished the policy to the agent on July 1 since I applied the constructive delivery definition. However, the exam answer indicates that the 14 day doesn't start until the policyowner receives it physically.
Feedback
Hey Marie,
Please forgive me, somehow I overlooked this question from you. This question is pretty much bogus and needs reworking. Thank you for pointing it out.
In health insurance the "free look" is 10 days not 14 days. See page 361 in the study manual.
When we look at this question, assuming that the premise of policy delivery is viable, I believe that the answer would be 14 days from July 9th and therefore the answer would be A or July 23. Your thoughts about constructive receipt is very perceptive, however the question does not hint that constructive receipt is in play here. Please note that almost all policies being delivered in today's world requires a signed and dated policy delivery receipt executed by the policy owner. One other thought is that remember that the agent is responsible to the insurer first. In our consumer driven world, to protect the company, the "free look" would almost always start on the date that the policy owner physically receives the policy. This practice would make sure that the policy owner would receive the full time allotted to decide whether or not to keep the policy. I hope this helps.
Jerry Bateman