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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.
- a) 31 days from receipt of the policy summary.Correct
- b) 7 days from receipt of the policy summary.
- c) 14 days from receipt of the policy summary.
- 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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