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). Option A confuses this with surrender, not free-look. Option C is the wrong amount — California prohibits administrative deductions during the free-look. Option D 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.
Law Reference: California Insurance Code §10127.10Practice all 315 questions free — no signup required.
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