A convertible term policy is converted to a permanent policy in the fourth year of coverage. Which best describes the conversion?
Explanation
The conversion privilege lets the policyowner exchange a convertible term policy for a permanent policy without showing evidence of insurability, as long as it is exercised within the conversion period defined in the policy. The new permanent policy's premium is set using either the attained-age method or the original-age method, depending on what the policy allows.
Law Reference: Cal. Ins. Code §10209.5This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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