What requirement must an insurance company fulfill regarding the free-look provision?

The free-look provision is a feature included in many life insurance policies that allows policyholders a specified period after purchasing a policy to review it and decide whether to keep it or return it for a refund. The requirement for an insurance company in this context is to allow a full refund upon the return of the policy during this designated free-look period. This period typically lasts from 10 to 30 days, depending on the state regulations and the specific policy terms.

By offering a full refund, the insurance company ensures that the policyholder has the opportunity to thoroughly assess the terms, coverage, and suitability of the policy for their needs without the pressure of having made a final commitment. This provision promotes consumer protection and allows individuals to make informed decisions regarding their insurance coverage.