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Consumer Protection Long-term Insurance Policy Rights

What is the 'cooling-off' period for a standard long-term insurance policy, during which a client can cancel without penalty?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) 7 days
  2. b) 14 days
  3. c) 31 days (or 30 days depending on the Act)Correct
  4. d) 60 days

Why this is the answer

The Policyholder Protection Rules (PPRs) under the Long-Term Insurance Act provide clients with a 'cooling-off' period of 31 days from the date they receive the policy summary, during which they can cancel the policy and receive a refund of premiums.

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