What Does Free Look Period Mean?
A free look period, in the context of insurance, is the time allotted for the insured to enjoy full coverage and review the policy, clarify its terms and conditions, and in case they decide to cancel the contract, receive a full refund of the premiums paid without the need to pay any penalties.
Free look period is also known as free examination period.
Insuranceopedia Explains Free Look Period
Depending on the State in which the policy is sold, State insurance departments may require that the free look period last from 10 to 14 days from the time the insurance contract is received by the insured. In New York, for instance, a 30-day free look period is required for policies offered via mail.
If the insured decides to forego the policy during the free look period, they may be required to submit a written notice of cancellation before receiving a refund. Upon the expiration of this period, the insurance contract and all its terms and conditions are deemed accepted by the policyholder and any cancellations may result in forfeited premiums.