PSI Ohio Insurance Practice Exam

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Get ready for the PSI Ohio Insurance Test. Use flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

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Practice this question and more.

Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if rejected?

Grace period
Free look
Reinstatement
Cancellation clause

The correct answer is: Free look

The provision that permits the policyowner to take a specified number of days to examine the contract, allowing for its cancellation and a full refund if rejected, is known as the "free look" provision. This feature is essential as it grants consumers the opportunity to review the terms and conditions of the insurance policy after purchase. If the policyholder finds that the policy does not meet their needs or expectations, they have the right to cancel it within the designated free look period, ensuring that they can walk away without any financial loss. This is a consumer protection measure that helps individuals make informed decisions without the pressure of immediate commitment. The free look period typically lasts from 10 to 30 days, depending on state laws and the type of insurance. During that time, the policyholder can scrutinize the policy’s details and decide whether they want to keep it or not, enhancing their confidence in their insurance choices.