Life Insurance Policy Clauses

Insuring Clause

The Insuring Clause states the basic promise of the insurance company to pay benefits upon the death of the insured.  It is usually one paragraph on the front (cover or face) page of the policy.    The cover page is the Declaration (Dec) page.

Consideration Clause

The Consideration Clause tells that the insured promises to pay the premium. No contract is effective in life and health insurance until the premium is paid.

Execution Clause

The execution clause states that the contract is in force (executed) when both parties have met the conditions of the contract.

                        Free Look (Sometimes called Free Examination or Right of Refusal)


The Free Look is the time a policy owner has to decide to return the policy for a full refund.  No reasons need to be given and notifying the agent is the same as notifying the company.  The standard Free Look time is ten (10) calendar days from the time the policy is in the possession of the owner.  Companies can always be more liberal than the standard, but can never be more restrictive.  A thirty (30) day Free Look must be given for all Medicare Supplement Policies and all Long Term Care policies in health insurance.  A Free Look period is not “free insurance.”

Written by Admin on March 4, 2009 under Insurance Basics.


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