State RegulationsFL specificDifficulty 2/5
A Miami policyowner decides she does not want her newly delivered ordinary individual life policy and returns it within 14 days. What refund is she entitled to?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The exam answer is 14 days, and a policy returned within that window carries a full refund of premium. Fla. Stat. 626.99(4)(a) ties 14 days to the Buyer's Guide delivery condition: the insurer must deliver the Buyer's Guide and Policy Summary before accepting the initial premium, unless the policy provides an unconditional refund for at least 14 days. Florida has no separate general free-look statute for life policies.
Why the other options are wrong
- A) The refund within the free-look window is unconditional - no cancellation fee may be deducted.
- B) A new policy returned in the free-look period is refunded at premium, not at cash value.
- C) The free-look right exists precisely so that a customer may reconsider - buyer's remorse is the point.
Memory hook
14 days, every dollar back.