Certified Financial Consultant (CFC) Practice Exam

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Where can the information regarding the free-look provision be found after a policy replacement?

Notice of Cancellation
Policy summary document
Notice Regarding Replacement
Annual premium statement

The correct answer is: Notice Regarding Replacement

The information regarding the free-look provision can be primarily found in the Notice Regarding Replacement. This document is essential because it informs the policyholder about their rights and options when replacing an existing insurance policy. It explicitly outlines the free-look provision, which allows the policyholder a certain period to review the new policy after it has been issued. During this time, they can decide whether to keep the policy or cancel it without penalty. The other documents do not specifically detail the free-look provision. The Notice of Cancellation typically focuses on the procedures for canceling a policy rather than informing about rights related to a newly issued policy. The policy summary document provides an overview of the policy features and benefits but may not specifically highlight cancellation or adjustment provisions like the free-look period. An annual premium statement is mainly focused on payment information and does not cover policy rights or replacement details. Thus, the Notice Regarding Replacement is the most relevant document for understanding the free-look provision following a policy replacement.