L&HNJhard
A New Jersey resident purchases a new individual life policy that replaces an in-force NJ life policy. Under the interaction between N.J.S.A. 17B:25-3 and N.J.A.C. 11:4-2, what free-look period must the new policy provide and from when does it run?
A10 days running from the application date
B10 days running from policy delivery, same as a non-replacement sale
CNo free-look applies because the replaced policy already had one, so the applicant forfeits any right to cancel
30 days running from policy delivery, because the transaction is a replacement
Why this is the answer
While N.J.S.A. 17B:25-3 sets a 10-day standard free-look from delivery, N.J.A.C. 11:4-2 extends the period to 30 days from delivery whenever the transaction is a replacement of an existing life policy. The longer window lets the applicant unwind a regretted replacement.
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