Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

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What is the duration of the free look period offered to the policyowner under a Variable Life (VL) contract?

30 days
45 days
60 days
10 days

The correct answer is: 45 days

The duration of the free look period offered to the policyowner under a Variable Life contract is typically 45 days. During this time, the policyowner has the right to review the terms of the policy and decide whether to keep it or cancel it without incurring any financial losses. This period is crucial for policyowners, as it allows them to fully understand the policy's features, benefits, and any associated risks before making a long-term commitment. The free look provision is designed to provide protection and peace of mind, ensuring that policyowners have ample time to consider their decision after receiving the policy documentation. If they choose to cancel the policy within this period, they are usually entitled to a full refund of premiums paid, minus any charges that may have applied for the invested portion if applicable. Knowing the specifics of the free look period is important for those involved in the sale and management of life insurance policies, as it helps ensure compliance with regulatory standards and contributes to responsible customer service.