An insurer issues an individual life insurance policy to a 68-year-old California resident. During the free-look period, the senior decides to return the policy. By statute, what must the insurer refund and within what window?

Explanation

California Insurance Code §10127.10 grants a 30-day right to return for any individual life insurance or annuity policy issued or delivered to a person age 60 or older. If returned within 30 days of receipt, the senior is entitled to a full refund of all premiums paid (and, for variable annuities/variable life, of the contract value if so elected, but the standard rule for fixed life policies is full premium refund). The response paying only the cash surrender value confuses this with surrender, not free-look. The response letting the insurer keep a 10% administrative fee is the wrong amount — California prohibits administrative deductions during the free-look. And the response refunding only the unearned portion of the premium mixes pro-rata cancellation with free-look. The 30-day senior free-look is one of California's signature consumer protections, distinct from the standard 10-day window for younger buyers under §10127.9.