Free Look Period
What Does Free Look Period Mean?
A free look period, in the context of insurance, is the time given to the insured to fully review the policy, clarify its terms and conditions, and, if they choose to cancel the contract, receive a full refund of the premiums paid without any penalties.
The free look period is also known as the free examination period.
Insuranceopedia Explains Free Look Period
Depending on the state in which the policy is sold, state insurance departments may require a free look period of 10 to 14 days from the time the insurance contract is received by the insured. In New York, for example, a 30-day free look period is required for policies offered by mail.
If the insured decides to cancel the policy during the free look period, they may need to submit a written notice of cancellation to receive a refund. Once this period expires, the insurance contract and all its terms and conditions are considered accepted by the policyholder, and any cancellations may result in forfeited premiums.
