Certified Financial Consultant (CFC) Practice Exam

Where can an insured find information about whether the free-look provision applies after a replacement transaction on a Medicare supplement policy?

1. Policyholder agreement

2. Notice of Replacement

3. State insurance regulations

4. Insurance company website

The correct answer is: Notice of Replacement

The free-look provision is a critical component in many insurance policies, including Medicare supplement policies, as it allows the insured to review the policy for a specified period and return it for a full refund if they decide not to proceed. The most relevant place to find information about whether this provision applies after a replacement transaction is the notice of replacement. This notice is typically issued during the replacement process and is designed to provide clear disclosures regarding the potential implications of replacing an existing policy, including details about the free-look provision. It ensures that the insured is fully informed about their rights and any relevant provisions pertaining to their new policy. While the policyholder agreement, state insurance regulations, and the insurance company website may contain useful information, the notice of replacement is specifically tailored to address the circumstances surrounding policy replacement, making it the most appropriate source for the question posed.