How long is the right of recession for Accident and Sickness insurance?

The right of rescission, or the right to cancel an insurance policy within a specified period, plays an important role in protecting consumers after they purchase accident and sickness insurance. This period allows policyholders to reconsider their decision and ensure the insurance meets their needs and expectations.

The correct answer indicates that the right of rescission for accident and sickness insurance is established as 10 days. This duration is consistent across various jurisdictions to provide a standard timeframe within which consumers can assess their newly acquired coverage. Within those 10 days, policyholders can cancel the policy and receive a full refund of any premiums paid, assuming no claims have been made. This reflects the intention to give consumers the opportunity to review policy terms, understand exclusions, and determine if it aligns with their requirements without being pressured into a long-term commitment.

This 10-day timeframe is critical as it strikes a balance between providing sufficient time for reconsideration and ensuring that insurers can manage their underwriting processes effectively. Therefore, the right of rescission is a consumer protection mechanism designed to offer flexibility and promote informed decision-making in the insurance purchasing process.