State RegulationsMA specificDifficulty 2/5
An applicant in Massachusetts replaces an existing life insurance policy with a new policy from another insurer. Under 211 CMR 34.06(1)(d), what free-look right applies to the replacing policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
In the replacement context, 211 CMR 34.06(1)(d) gives the applicant 20 days for an unconditional refund of the replacing life policy or annuity. Massachusetts ties free-look rights to the transaction: the replacement transaction earns the longest period in the life rules precisely because replacing an existing policy is the highest-risk sale. The right runs alongside the replacement notice duties of 211 CMR 34.00.
Why the other options are wrong
- A) 10 days is the period under M.G.L. c. 175, § 187H for individual life policies with a face amount below $25,000, not the replacement period of 211 CMR 34.06(1)(d).
- C) 30 days is the right-to-return period for Medicare supplement coverage under 211 CMR 71.13, not for a replaced life policy.
- D) The replacement rule expressly provides the right; 211 CMR 34.06(1)(d) exists precisely because replacements carry elevated risk.
Memory hook
Replaced policy: twenty days to change your mind.