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Consumer Protection Long-term Insurance Policy Rights

Within what period may a client generally cancel a newly issued long-term insurance policy under the cooling-off provisions, 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) 31 days from receipt of the policy summary.Correct
  2. b) 7 days from receipt of the policy summary.
  3. c) 14 days from receipt of the policy summary.
  4. d) 60 days from receipt of the policy summary.

Why this is the answer

The Policyholder Protection Rules give a cooling-off period of 31 days from receipt of the summary, provided no benefit has been paid or claimed. Seven, fourteen and sixty days are not the prescribed cooling-off period.

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