Texas Life Agent Practice Exam

The time period covered by the Free Look Provision of a life insurance contract starts?

1. When the policy is issued

2. When the first premium payment is made

3. When the insured receives the contract

4. At age 65 of the policyholder

The correct answer is: When the insured receives the contract

The Free Look Provision of a life insurance contract allows policyholders to review their policy after issuance and decide if they want to keep it. The time period for this review begins when the insured receives the policy. This means that upon receiving the contract, the policyholder has a specified period—often 10 to 30 days, depending on state regulations—to examine the provisions and decide whether to accept the policy or return it for a full refund. This provision is particularly important as it provides a safety net for consumers, ensuring they have the opportunity to consider their decision without feeling pressured. By beginning the Free Look period when the insured receives the contract, it provides clarity and allows policyholders to make an informed decision based on the actual document they will be bound by.