VIIB Life Insurance and Annuity Policy replacement and Cancellation

Replacement

"Replacement" is any of the preceding transactions as well as a policy that is reissued with a reduction in the cash values or amended so as to affect the length and amount of coverage.

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

. If the owner returns the policy within the free-look period, the agreement will be void from its beginning. All premiums and any policy fees that have already been paid must be refunded to the owner.

The insured's right to cancel an insurance policy, in which all premiums will be refunded, extends

. The "free-look" period for all individual life insurance contracts delivered after January 1, 1990 shall be no less than 10 days and not exceed 30 days from the date the policy is delivered to the insured.

Each agent that submits an application for life insurance shall submit to the insurer

A signed statement by the insured and the agent regarding replacement must accompany applications that supplement or replace existing coverage.

. 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?

All premiums and policy fees paid for the policy must be refunded by the insurer to the owner within 30 days from the date that the insurer is notified that the insured has cancelled the policy.

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

Insurers must allow individual life insurance customers the ability to return their new policy within 10-30 days (this time period is up to the insurer) for a full refund.

Replacement of life insurance and annuities policies requires for the replacing and existing insurers to retain evidence of all signed applications and disclosures for no less than

. The replacing and existing insurers must retain evidence of all signed applications and disclosures, as well as other materials used in replacement or conservation, for no less than 3 years.

Jenn purchased an annuity contract on March 1st, but after carefully reviewing its limitations, she returned it to the insurer on March 15th. The insurer didn't have any specific instructions from the policyowner on how to invest the premium. What should Jenn expect from the insurance company?

According to the CA Insurance Code, if a variable annuity or life insurance contract is purchased and the owner doesn't instruct the insurance company to invest the premium in a stock or bond portfolio immediately, and if the policy is cancelled within 30 days, the policyowner will be entitled to a refund of the premium and policy fees paid.

An insurer has been found guilty of a Code violation regarding replacement. The insurer then repeats the violation.

Additional violations of the replacement article by an insurer will result in increased fines ($30,000 to $300,000). The Commissioner may suspend or revoke the license of any person or entity that violates this article.

Where replacement of existing coverage is involved, in addition to providing the proper notices to the applicant, the agent must

The agent must list any existing life insurance or annuities to be replaced on the application so that the INSURER can properly notify the Department of Insurance and current insurer regarding the replacement that is being made.