10-day Free Look 

  • I am rather curious as to how Allstate came up with the ten-day period.
  • Was it some kind of actuarial magic, or is there some reason for that figure?
  • It does seem awfully fast, with the mail delay these days and the inherent communication problems.

--  GREGORY S. STRONG

1973 - Price Disclosure and Cost Comparison, Society of Actuaries

The free look should be at least 3 days, or even 10 days, but there should be a cooling off period of at least 3 days.  (p1503)

--  Durkin

1973 - GOV - The Life Insurance Industry - Hart, Part 2 of 4

  • Without the ten day free look provision the company must give the agent a supply of Buyer's Guides and the ratebook must also  contain information needed to complete the Policy Summary.
  • This will indeed be time consuming for the agent to compute in front of the prospect.
  • The time required to do the arithmetic could distract from the real purpose of the sales interview, which is to convince the prospect that he needs insurance and that now is the time to fill this need. Since supplying this information can interfere with the sales process, it would appear much better to give the customer a ten day free look and supply the required information at time of delivery.

--  PAUL J. OVERBERG

1976 -  COST COMPARISONS AND POLICY LANGUAGE, Society of Actuaries

11/15/2017
LIBGWG CC, NAIC Proc.

ACLI Redlined Draft

Member Comment: I think the last sentence
is too broad of a statement. If the free  look
period ends, the amount you get back on the
11th day is far different than the amount you
would get back 5 years down the road.