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Q. I bought some insurance through a Cafeteria
Plan at work. When I received the policy, I decided I did not want it within
the free look period, and sent it back. The insurance company says that I
cannot cancel my coverage for a year. Is this right?
A. You can cancel your coverage. However, the
amount of premium that you allocated to be taken out of your paycheck each
month cannot be changed for one year without IRS approval, so you may want to
apply with another company, or allocate those dollars to a different tax
deductible item.