LLQP (Life Licence Qualification Program) Practice Exam · Question
After purchasing a new life insurance policy, Ms. Chen, a 45-year-old entrepreneur in Alberta, reviews the policy documents. She realizes the coverage amount is lower than she discussed with her advisor, David. The policy includes a provision allowing her to cancel it without penalty within a specific period after receiving the policy. What is this provision commonly known as?
The free-look period, also known as the right of rescission, allows a policyholder to review a new policy for a specified number of days (usually 10 days) after
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Question: After purchasing a new life insurance policy, Ms. Chen, a 45-year-old entrepreneur in Alberta, reviews the policy documents. She realizes the coverage amount is lower than she discussed with her advisor, David. The policy includes a provision allowing her to cancel it without penalty within a specific period after receiving the policy. What is this provision commonly known as?
Answer options: ✅ The free-look period
- The incontestability clause
- The grace period
- The reinstatement clause
Correct answer: The free-look period
Explanation: The free-look period, also known as the right of rescission, allows a policyholder to review a new policy for a specified number of days (usually 10 days) after delivery and return it for a full refund if dissatisfied.
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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