Life Insurance and Annuities-Policy Replacement and Cancellation

What is the minimum free-look period for newly issued life insurance policies in this state?

10 days

During the cancellation period, an insurer must refund any premiums and policy fees within how many days of written cancellation notice by the insured?

30

An insured has the right to cancel a policy by written notification to the insurer. This notification may be mailed to the insurer or returned to the original agent who made the sale. Upon receipt of the cancellation request, the insurer will

Refund any premiums and policy fees within 30 days of notice if the policy is within the cancellation period specified by the insurer

An insurer has been found guilty of a Code violation regarding replacement. The insurer then repeats the violation. What will be the minimum penalty?

$30,000

Any insurance agent who commits a repeated violation of the Insurance Code with respect to insurance replacement will be liable for

An administrative penalty of no less than $5,000 and no more than $50,000 per violation

Any insurance agent who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation

Be fined a sum of $1,000

Any insurer who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation

Be fined a sum of $10,000

A legally acceptable attempt by an existing insurer to dissuade a current policyowner from the replacement of existing life insurance is called

Conservation

Every individual life insurance policy must provide for a free-look provision that lasts for at

10 days

Every policy of individual life insurance must include a notice of right to cancel the policy, stating the specific time frame for the free-look period. Once the insured has cancelled the policy, within how many days must the insurer refund all premiums and policy fees?

30 days

All insurance policies and annuity contracts delivered to senior citizens in the State of California are subject to a cancellation period of at least

30 days

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in at least what type of print?

12-point bold print

The right of the applicant to rescind the policy for a full refund of all premiums

Must be clearly stated in the policy's text

During the free-look period, the premium for a variable annuity may be invested in all of the following EXCEPT

Value funds

An insured has the right to return the new insurance policy dor a full refund during the

Free-look period

Which of the following is true regarding a policy with a face value less than $10,000?

If it's returned during the free look period, the agreement will be void

Which of the following insureds has a right to cancel an individual life policy with in 30 days?

Insureds 60 years of age or older

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement Rule

To which of the following products does the Replacement Regulation apply?

Whole life insurance