Question 7015 of 303 · California Life-Only Agent Exam

Policy cancellation by the owner during the free look period generally has what effect?

Exactly one answer is correct.

AThe policy becomes paid-up for a reduced amount
BThe policy converts automatically to term insurance
CThe policy is treated as if it had never been issued
DThe insurer keeps the premium as a cancellation fee

Show solution

Correct answer to question 7015

C: The policy is treated as if it had never been issued

Explanation

Cancellation during free look unwinds the transaction and returns the owner to the prior position.