Free Examination Period
Definition - What does Free Examination Period mean?
A free examination period, in the context of insurance, is the period during which a new policyholder is allowed to evaluate and cancel a policy without facing penalties while still benefiting from full coverage. During this time, they may return the policy for a full refund without being required to pay any penalty or surcharge.
A free examination period is also known as free look period.
Insuranceopedia explains Free Examination Period
After the delivery of an insurance policy, the insurer may allow 10 to 14 days of a free examination period for the policyholder to consider the terms and decide whether they are satisfied or not. They may also ask any questions about certain conditions or stipulations. Cancellation during this period does not result in any penalties.