Rhode Island Life Insurance Practice Exam

When does Rhode Island's 20-day free-look period for life insurance policies begin?

1. At the time of policy application

2. On the effective date of coverage

3. Upon receipt of the policy

4. Date of delivery

The correct answer is: Date of delivery

The 20-day free-look period for life insurance policies in Rhode Island begins upon receipt of the policy. This provision allows policyholders the opportunity to review their policy and ensure it meets their needs. If they decide not to proceed with the policy, they can cancel it within that 20-day timeframe and receive a full refund of any premiums paid. The reasoning behind starting the free-look period at the receipt of the policy is to give the insured ample time to read and understand the terms and conditions of their coverage, which is crucial for making informed decisions about their life insurance. Other options, such as starting the period at the time of application or effective date of coverage, would not provide the insured with the necessary time to adequately assess their policy. The date of delivery is closely related but is not the terminus for initiating the free-look period; it is the actual receipt of the policy by the insured that matters.