Life Insurance and Annuities- Policy Replacement and Cancellation

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

Whole life insurance

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

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

30

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

A fine of $10,000

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

Those who are 60 years of age or older

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

Value funds

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

$30,000

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/font?

12-point bold print

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

Finish is statement- 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

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

Conservation

An insured has the right to return the new insurance policy for a full refund during what period?

Free look period

Which document(s) must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

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

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 do what?

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

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

Replacement rule