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Article 2 of 15 in Sample Disability Insurance Policy and Provisions Review |
Policy cover page: free-look examination period |
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The free examination period of a typical disability insurance policy appears as part of the cover page.
| 10 DAY EXAMINATION OFFER. THE OWNER MAY RETURN THIS POLICY TO EITHER THE AGENT OR OUR HOME OFICE WITHIN TEN DAYS OF ITS RECEIPT. WE WILL REFUND ANY PREMIUMS PAID AND THE POLICY WILL BE CONSIDERED VOID FROM ITS INCEPTION. PLEASE READ THIS POLICY CAREFULLY TO BETTER USE ITS MANY BENEFITS. |
COMMENT
This policy provides a 10-day free look period. Some policies provide a 20-day or 30-day period, depending on the state. Insurance companies generally adhere to the requirements of the states in which they do business. During this free look period you can return the policy and get a full refund. You do not have to give a reason for returning the policy in order to get your money back. The returned policy will be considered as never having been in effect.
This is your last chance to make sure that you understand how your policy is going to work, and you don’t have much time to do it. Those ten days will go very fast. Once you receive the policy, you need to read the entire document carefully. If you don’t do this immediately, you may not have time to get your questions answered before the free-look period expires.
IMPORTANT NOTICE – Please review the copy of the application attached to this policy. Write to All America Life Insurance Company, 1234 Main Street, New York, New York 56789 within then days if any information shown on it is not correct and complete, or if any medical history has been left out. The application is a part of the policy. The policy was issued on the basis that the answers to all the questions and the information shown on the application are correct and complete. Omissions or misstatements on the application could cause an otherwise valid claim to be denied.
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COMMENT
The insurance company is emphasizing this notice because if claim, the insurance company discovers medical history not mentioned on the application when you file a claim, the company may have a valid basis for denying the claim and rescinding, or canceling your policy at the time when you need it the most and cannot get other coverage. You may not be responsible for any missing or inaccurate information because the agent usually asks questions and completes the application. Check your application carefully to be sure the information is complete and accurate and the agent made no errors in transferring your information to the application. The agent wanted to make the sale and receive a commission, which is ample incentive to fudge some answers to be sure the company approves your application. READ THE APPLICATION CAREFULLY! |
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