State RegulationsFL specificDifficulty 2/5
A Florida consumer returns her Medicare supplement policy within the free-look period. What refund is she entitled to?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 627.674(4)(d), the Medicare supplement free look entitles the insured to return the policy within 30 days of receipt and receive the full premium back — not the premium minus fees or claims. The statute also requires a prominent no-loss cancellation clause in the policy itself. This guarantees the senior can walk away from the purchase at no cost if the coverage proves unsuitable.
Why the other options are wrong
- A) No administrative fee may be deducted; the refund is the full premium.
- B) Claims paid are not offset against the refund during the Med Supp free look.
- D) Issuance of the policy does not eliminate the free-look refund right.
Memory hook
Free look = free exit with every premium dollar back.