State RegulationsNY specificDifficulty 2/5
An ordinary, non-mail-order life insurance policy is delivered by an agent in Syracuse. Under New York law, the policy must give the insured the right to return it for a full refund for at least how long after receipt?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3203(a)(11), the return-for-refund provision of a life policy must run not less than 10 days and not more than 30 days after receipt, and §3209(d)(7) guarantees an unconditional refund of premium for at least 10 days after receipt. For ordinary agent-delivered policies, then, the statutory minimum is 10 days, with 30 days being the maximum the clause may set and the mandatory period for mail-order policies.
Why the other options are wrong
- B) Thirty days is the ceiling for ordinary policies and the mandatory period for mail-order sales under §3203(a)(11); the guaranteed minimum for an ordinary policy is 10 days.
- C) Thirty-one days is the life insurance grace period under §3203(a)(1), not the free-look period — a classic New York mix-up.
- D) Sixty-one days is the flexible-premium policy grace period under §3203(a)(1), not any free-look period.
Memory hook
Ordinary free look: at least 10, at most 30 — never 31 (that's grace).