Question

On June 5, Karl completed an application for critical illness coverage and paid an annual premiumof $1,250. On June 25, the underwriter approved the policy under standard conditions and sent it to the agent, who received it on July 7. The agent contacted the client on August 8 and the date for delivery was set at August 10. On August 12, Karl learns that he will lose his job at the end of the month. As such, he decides to cancel the policy, returning it to the insurer on August 15. What is the rule governing Karl’s right to have his premium refunded?

Accepted Answer

He is entitled to a refund, because the policy was returned within 10 days of delivery.

Answer

He is not entitled to a refund, because the policy was approved more than 30 days ago.

Answer

He is entitled to a refund, because the representative delivered the policy more than 10 days after its issuance.

Answer

He is not entitled to a refund, because the application was signed more than 30 days ago.

On June 5, Karl completed an application for critical illness coverage and paid an annual premiumof $1,250. On June 25, the underwriter approved the…

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