Chapter 8: Life Insurance and Annuities - Policy Replacement and Cancellation

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

30

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

Value funds

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

10 days

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

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.

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

Insureds 60 years of age or older

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.

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

Free Look Period

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

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

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

Whole life insurance