The 10-day rescission right (or free look) does not take effect until such time as the policy contract is delivered to the client. It is, therefore, very important to deliver the policy contract, to the policyowner, as soon as it is possible, to allow the client to review the policy. It is an industry practice to deliver the policy within thirty (30) days of the issue date.
Delivering the policy to the client is the advisor's responsibility and most importantly it is a requirement under the insurance legislation of the various provinces. You should be aware that the insurance contract does not take effect unless:
| Common law provinces | Province of Quebec only |
|---|---|
| Payment of the first premium has been made. | Payment of the first premium has been made. |
| The policy has been delivered to the client. | The risk has been accepted by the insurer. |
| No change has taken place in the insurability1 of the life to be insured between the time the application was signed and the time the policy was delivered. | No change has taken place in the insurability of the life to be insured between the time the application was signed and the time the risk was accepted by the insurer. |
Policy Delivery by the Advisor
Delivering the policy and ensuring that no change in the insurability of the life insured has taken place are the advisor's responsibilities. To confirm the delivery of the policy, you must obtain and keep on file, a receipt signed by the client acknowledging delivery of the policy document. Proof of delivery may include one of the following:
- A letter or note signed and dated by the client acknowledging receipt of the policy document.
- Registered mail receipt, where the policy document has been mailed to the client. This method of delivery cannot be used if there are post-issue requirements.
- Policy Delivery Receipt.
To facilitate the process, we have developed a Policy Delivery Receipt to help the advisor comply with the requirements. Such form can be printed from our Advisor Source (www.advisors.standardlife.ca) web site or from our Wealthcare illustration software.
Policy Return
A policy refused on delivery must be returned to Standard Life within ten days with an explanatory note indicating the date the advisor met with the client to deliver it. If a client returns a policy after delivery, it must be returned to Standard Life with the policy delivery receipt.
1Regardless of the method of delivery, the advisor should ensure that any change in the health or insurability of the proposed insured(s), between the time the application was completed and the time the policy is delivered, which would require a change to any answer or statement made in the application or medical, is reported by the client or advisor to Standard Life.
