by stefcw20 » Thu Dec 10, 2009 04:26 pm
I just bought a life insurance policy from State Fram, but now want to cancel due to having a policy with my employer. It has not been 30 days, should there be any penalties for cancelling my policy with state Farm?
Posted: Thu Dec 10, 2009 07:52 pm Post Subject:
Every state has a laws that deal with this. Commonly called "free-look" or "right to return" provisions, this mandated and required provision gives the policyowner a period of time after the policy has been delivered to them to request a refund of the premium paid for the policy. The time-frame to return the policy and request your refund of premium paid is more than likely 30 days.
Remember- this time period starts once you have actually received the policy; not 30 days from when you bought it, when it was actually issued or any other date.
If you request a refund, the policy's coverage will be "rescinded." This means that the policy will be canceled retroactive to inception and no coverage will have ever existed. Think of this provision as a "100% money-back guarantee" if you're not satisfied with the product within 30 days of it's delivery to you.
The insurance company cannot keep ANYTHING; they must refund the full amount of the premium you paid. It will be as if you never bought it in the first place.
Lastly, different states have different time periods here. Although it's likely 30 days, if you'll provide me your state I can give you the specific rule!
InsTeacher 8)
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