Under 11 NCAC 12 .0447, how must the Ten Day Free Look provision be displayed on an individual life or annuity policy issued in North Carolina?

Why C is correct

Under 11 NCAC 12 .0447, the Ten Day Free Look provision must be shown by sticker or print on the face of every individual life or annuity policy before issuance and delivery. It gives the policyholder, following receipt of the policy, the right to return it for a prompt refund of the premium paid. This standard 10-day right contrasts with the 30-day return right that applies only in replacement transactions.

Why the other options are wrong

• A) The rule requires the notice on the face of the policy, not buried on an inner declarations page.
• B) A separate later mailing defeats the rule, which requires display on the policy itself before issuance.
• D) The free-look notice must be on the policy face; an add-on endorsement is not what the rule requires.

Memory hook

Free look lives on the policy's face — sticker or print, 10 days to return.

Why A is correct

Under 11 NCAC 12 .0447, the Ten Day Free Look provision must be shown by sticker or print on the face of every individual life or annuity policy before issuance, giving the policyholder 10 days after receipt to return the policy for a prompt refund of premium. This is the standard free-look right for an ordinary purchase.

Why the other options are wrong

• B) The 30-day unconditional-refund right belongs to replacement transactions under 11 NCAC 12 .0612(a)(4), not to the standard free look.
• C) No 45-day free-look period exists in North Carolina rules.
• D) The free look is a 10-day right after receipt, not a cancel-anytime option.

Memory hook

Standard life free look: ten days on the policy face.

Why C is correct

Under 11 NCAC 12 .0447, the Ten Day Free Look provision must be shown by sticker or print on the face of every individual life or annuity policy before issuance. It gives the policyholder, after receipt of the policy, the right to return it for a prompt refund of the premium paid.

Why the other options are wrong

• A) The guaranty association summary must be delivered before or at policy delivery, but it is not the face-of-policy free-look requirement.
• B) No rule requires an appointment number to appear on the face of the policy.
• D) The standard provisions are part of the contract, but the regulation specifically requires the free-look notice on the face of the policy.

Memory hook

Sticker on the face says: ten days to change your mind.

Why B is correct

Under 11 NCAC 12 .0447, every individual life or annuity policy must display the Ten Day Free Look provision by sticker or print on the face of the policy before issuance, giving the policyholder the right to return the policy after receipt for a prompt refund of the premium paid. The standard free look in North Carolina is 10 days; only replacement transactions carry the longer right.

Why the other options are wrong

• A is wrong because the 30-day return right applies only in replacement transactions under 11 NCAC 12 .0612(a)(4), not to a standard policy sale.
• C is wrong because no 15-day free look exists in the North Carolina rule.
• D is wrong because 45 days is not a free-look figure; it appears only in the notice-before-forfeiture timing rules.

Memory hook

Standard free look: ten days on the face of the policy; thirty is for replacements.