A California producer is preparing to sell an individual deferred annuity to a 72-year-old client. Which statement BEST describes the senior-specific disclosure and free-look requirements?

Question

Accepted Answer

Under California Insurance Code §10127.10 the senior (age 60+) is entitled to a 30-day free-look right to return the annuity for a full refund of premium, AND under §10127.13 the producer must deliver an annuity disclosure that includes a written contract summary and required Buyer's Guide; additional in-home solicitation notice under §789.10 applies if meeting in the senior's home

Answer

Senior protections apply only to fixed annuities and never to variable annuities, because a variable contract is a security whose sale is governed exclusively by FINRA suitability rules; the senior free-look, the Buyer's Guide, and the in-home solicitation notice are all displaced once a separate account is involved, and the producer need deliver only the prospectus, with state disclosure duties resuming only after the contract has been accepted

Answer

No special senior protection applies; the standard free-look printed in the contract governs, because California's senior statutes reach individual life insurance only and were never extended to annuity contracts; the producer's one added duty when the buyer is elderly is to have an adult family member co-sign the application before delivery

Answer

The senior free-look runs 30 days but no separate annuity disclosure is required, because delivery of the contract itself satisfies every disclosure obligation; the Buyer's Guide and the written contract summary are optional sales aids the producer hands out at his own discretion, and the in-home solicitation notice applies only to long-term care sales

A California producer is preparing to sell an individual deferred annuity to a 72-year-old client. Which statement BEST describes the senior-specific disclosure and free-look requirements?

Explanation

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