Question

28 erika applied for an individual disability insurance policy on december 15, 2021 and paid the first premium with the application. her application was approved by the insurer and she received the final contract on january 20, 2022. erika wants to know if she will receive a refund of the premiums if she cancels the contract. what would you tell her? a. she can cancel the contract anytime, but will not receive a refund as the contract is already in force. b. she will get a refund of the premium if she cancels the contract before january 30, 2022. c. she has 15 business days after receiving the contract to cancel it for a full refund of the premium. d. she will get a refund of the premium only if she cancels the contract within 48 hours after receiving it.

Explanation:

In disability insurance, the "free - look" period (the time after receiving the contract to cancel for a full premium refund) is often 15 business days. Option a is wrong as the free - look period allows a refund. Option b's January 30 date is not a standard rule. Option d's 48 - hour period is incorrect for disability insurance's free - look. Option c matches the standard free - look period rule.

Answer:

c. She has 15 business days after receiving the contract to cancel it for a full refund of the premium.