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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.
- a) 7 days
- b) 14 days
- c) 31 days (or 30 days depending on the Act)Correct
- 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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